In the latest market close, Axon Enterprise (AXON) reached $550.65, with a -1.5% movement compared to the previous day. This change lagged the S&P 500's 0.33% loss on the day. Meanwhile, the Dow experienced a drop of 0.37%, and the technology-dominated Nasdaq saw a decrease of 0.53%.
Shares of the maker of stun guns and body cameras have depreciated by 2.33% over the course of the past month, underperforming the Aerospace sector's gain of 4.54% and outperforming the S&P 500's loss of 4.03%.
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 $1.34, marking a 16.52% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $587.76 million, reflecting a 27.57% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.38 per share and a revenue of $2.61 billion, representing changes of +7.41% and +25.15%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Axon Enterprise. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 86.74% lower. 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 87.67. This valuation marks a premium compared to its industry's average Forward P/E of 31.11.
One should further note that AXON currently holds a PEG ratio of 3.15. 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 of the close of trade yesterday, the Aerospace - Defense Equipment industry held an average PEG ratio of 2.42.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. Currently, this industry holds a Zacks Industry Rank of 30, positioning it in the top 12% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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