Axon Enterprise (AXON) Surpasses Market Returns: Some Facts Worth Knowing

Axon Enterprise (AXON) closed the most recent trading day at $507.28, moving +2.22% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 1.15%. On the other hand, the Dow registered a gain of 1.38%, and the technology-centric Nasdaq increased by 1.38%.

Shares of the maker of stun guns and body cameras have appreciated by 14.37% over the course of the past month, outperforming the Aerospace sector's loss of 8.81%, and the S&P 500's loss of 5.69%.

The investment community will be paying close attention to the earnings performance of Axon Enterprise in its upcoming release. On that day, Axon Enterprise is projected to report earnings of $1.66 per share, which would represent year-over-year growth of 17.73%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $779.78 million, up 29.18% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.12 per share and a revenue of $3.57 billion, representing changes of +18.54% and +28.31%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Axon Enterprise. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 5.67% increase. Axon Enterprise currently has a Zacks Rank of #3 (Hold).

In the context of valuation, Axon Enterprise is at present trading with a Forward P/E ratio of 61.15. This indicates a premium in contrast to its industry's Forward P/E of 34.65.

Also, we should mention that AXON has a PEG ratio of 1.84. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Aerospace - Defense Equipment industry held an average PEG ratio of 2.23.

The Aerospace - Defense Equipment industry is part of the Aerospace sector. Currently, this industry holds a Zacks Industry Rank of 81, positioning it in the top 34% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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