Yahoo Finance Here's Why Axon Enterprise (AXON) Gained But Lagged the Market Today
In the latest market close, Axon Enterprise (AXON) reached $393.84, with a +0.14% movement compared to the previous day. This change lagged the S&P 500's 0.28% gain on the day. Elsewhere, the Dow saw an upswing of 0.15%, while the tech-heavy Nasdaq appreciated by 0.15%.
Shares of the maker of stun guns and body cameras witnessed a gain of 6.09% over the previous month, beating the performance of the Industrial Products sector with its gain of 5.6% and the S&P 500's gain of 2%.
Investors will be eagerly watching for the performance of Axon Enterprise in its upcoming earnings disclosure. On that day, Axon Enterprise is projected to report earnings of $1.21 per share, which would represent year-over-year growth of 18.63%. In the meantime, our current consensus estimate forecasts the revenue to be $526.43 million, indicating a 27.28% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.91 per share and revenue of $2.04 billion, which would represent changes of +18.6% and +30.55%, respectively, from the prior year.
Any recent changes to analyst estimates for Axon Enterprise should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Axon Enterprise currently has a Zacks Rank of #3 (Hold).
Investors should also note Axon Enterprise's current valuation metrics, including its Forward P/E ratio of 80.15. This indicates a premium in contrast to its industry's Forward P/E of 23.3.
It is also worth noting that AXON currently has a PEG ratio of 3.85. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Security and Safety Services industry stood at 2.28 at the close of the market yesterday.
The Security and Safety Services industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 135, placing it within the bottom 47% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Axon Enterprise, Inc (AXON) : Free Stock Analysis Report
