Axon Enterprise (AXON) closed at $677.40 in the latest trading session, marking a -0.46% move from the prior day. This change lagged the S&P 500's daily gain of 0.36%. On the other hand, the Dow registered a loss of 0.28%, and the technology-centric Nasdaq increased by 0.51%.
Heading into today, shares of the maker of stun guns and body cameras had gained 17.87% over the past month, outpacing the Aerospace sector's gain of 3.56% and the S&P 500's gain of 2.11% in that time.
Market participants will be closely following the financial results of Axon Enterprise in its upcoming release. The company is forecasted to report an EPS of $1.51, showcasing a 34.82% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $567.56 million, showing a 31.34% escalation compared to the year-ago quarter.
Investors should also pay attention to any latest changes in analyst estimates for Axon Enterprise. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 remained unchanged. 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 104.76. This represents a premium compared to its industry's average Forward P/E of 30.51.
Investors should also note that AXON has a PEG ratio of 3.52 right now. 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. By the end of yesterday's trading, the Aerospace - Defense Equipment industry had an average PEG ratio of 2.45.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 141, putting it in the bottom 44% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow AXON in the coming trading sessions, be sure to utilize Zacks.com.
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