Valued at around $48.2 billion by market cap, Arizona-based Axon Enterprise, Inc. (AXON) stands as a trailblazer in global public safety technology, with a bold mission to reduce gun-related deaths involving police and the public by 50% before 2033. By crafting an integrated public safety operating system, Axon revolutionizes modern policing with cutting-edge solutions, including TASER devices, body and in-car cameras, and cloud-powered evidence management tools.
Shares of this public safety technology provider have delivered stunning gains of 178.3% over the past year, dwarfing the broader S&P 500 Index’s ($SPX) 31.8% return over the same time frame. The stock has also staged quite a remarkable performance in 2024, delivering a return of 145.8%, far outpacing SPX’s 25.8% YTD growth.
Zooming in further, AXON’s outperformance becomes even more pronounced when compared to iShares Global Industrials ETF’s (EXI) 26.9% annual return and 17.8% gains on a YTD basis.
Axon’s remarkable success can be traced to its expanding footprint in law enforcement and its steady rollout of innovative products that continue to elevate its financial performance and attract investor attention. The company’s ability to address evolving public safety needs with cutting-edge solutions has positioned it as a leader in the sector. In fact, AXON stock achieved new heights as its stock skyrocketed 28.9% on Nov. 8, following the release of a stronger-than-expected Q3 earnings report on Nov. 7.
While Tasers are a long-established product, Axon continues to defy expectations as a high-growth company. By branching into new verticals and expanding its product portfolio, Axon has achieved over 30% annual revenue growth in each of the first three quarters of fiscal 2024, extending its impressive streak to 11 consecutive quarters of over 25% growth. In Q3 alone, Axon’s revenue surged 32% year over year to $544 million, showcasing its relentless momentum.
Adjusted earnings of $1.45 per share also surged 38% annually, crushing Wall Street estimates by a solid 21% margin. Meanwhile, for the current fiscal year, ending in December, analysts expect AXON’s EPS to decline 46% year over year to $1.53 per share.
However, among the 15 analysts covering the stock, the consensus rating is a “Strong Buy,” which is based on 12 “Strong Buy,” two “Moderate Buy,” and one “Hold” rating. Plus, this configuration has remained steady over the past three months.
On Nov. 11, Northcoast Research raised its price target on AXON stock from $448 to $650 and maintained a “Buy” rating. This newly raised target suggests a potential upside of only 2.5% from current levels.
While the stock is trading premium to its average analyst price target of $553.71, the Street-high price target of $750 suggests that AXON could rally as much as 18.1% from current levels.
On the date of publication, Anushka Mukherjee did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart- 3 'Strong Buy' Large-Cap Stocks to Buy and Hold
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