Axon Enterprise (AXON) Stock Falls on Market Recovery: Some Information for Investors

Axon Enterprise (AXON) Stock Falls on Market Recovery: Some Information for Investors

The latest trading session ended with Axon Enterprise (AXON) trading at $293.29, representing a change of -1.75% from the previous trading day’s close. The stock lagged the S&P 500, which posted a daily gain of 1.02%. At the same time, the Dow gained 1.09% and the tech-heavy Nasdaq gained 1.18%.

Shares of the stun gun and body camera maker rose 4.01 percent over the past month, outpacing the Industrial Products sector’s loss of 2.29 percent and lagging the S&P 500’s gain of 4.44 percent.

Investors will be eagerly awaiting Axon Enterprise’s performance in its upcoming earnings release. On that day, Axon Enterprise is expected to report earnings of $1.08 per share, down 2.7% year over year. In addition, our latest consensus estimate is calling for revenue of $476.34 million, up 27.16% from the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $4.68 per share and revenue of $1.98 billion, representing year-over-year changes of +13.04% and +26.65%, respectively.

In addition, investors should keep an eye on recent changes in analyst forecasts for Axon Enterprise. Recent changes typically reflect recent near-term business trends. Positive estimate changes reflect analyst optimism about the company’s business and profitability.

Our research has shown that these estimate changes are directly linked to near-term stock price movements. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and provides a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive track record of exceeding expectations, as validated by outside audits. Stocks ranked #1 have delivered an average annual return of +25% since 1988. Over the past 30 days, the Zacks Consensus EPS estimate remained unchanged. Currently, Axon Enterprise has a Zacks Rank of #3 (Hold).

In terms of valuation, Axon Enterprise has a P/E ratio of 63.73. This valuation is higher than the industry average P/E ratio of 23.47.

The Security and Protection Services industry is part of the Industrial Products sector. This industry, which currently has a Zacks Industry Rank of 93, ranks in the top 37% of all 250+ industries.

The Zacks Industry Rank is ranked from best to worst based on the average Zacks Rank of the individual companies in each of these sectors. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.

Don’t forget to rely on in the following trading sessions to keep track of all these and other metrics that affect the stock.

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