Axon Enterprise (AXON) closed at $756.09 in the latest trading session, marking a +1.37% move from the prior day. The stock's performance was ahead of the S&P 500's daily loss of 0.01%. Meanwhile, the Dow lost 0.32%, and the Nasdaq, a tech-heavy index, added 0.05%.
Prior to today's trading, shares of the maker of stun guns and body cameras had lost 3.23% lagged the Aerospace sector's gain of 6.62% and the S&P 500's gain of 5.37%.
Market participants will be closely following the financial results of Axon Enterprise in its upcoming release. It is anticipated that the company will report an EPS of $1.54, marking a 28.33% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $641.21 million, indicating a 27.2% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.34 per share and revenue of $2.65 billion, which would represent changes of +6.73% and +27.17%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Axon Enterprise. 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 business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Axon Enterprise is currently a Zacks Rank #3 (Hold).
With respect to valuation, Axon Enterprise is currently being traded at a Forward P/E ratio of 117.67. This signifies a premium in comparison to the average Forward P/E of 38.85 for its industry.
Investors should also note that AXON has a PEG ratio of 4.14 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Aerospace - Defense Equipment industry was having an average PEG ratio of 2.87.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This industry, currently bearing a Zacks Industry Rank of 74, finds itself in the top 30% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Axon Enterprise, Inc (AXON): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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