Is Axon Enterprise (AXON) Outperforming Other Aerospace Stocks This Year?

For those looking to find strong Aerospace stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Axon Enterprise (AXON) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Aerospace sector should help us answer this question.

Axon Enterprise is one of 58 individual stocks in the Aerospace sector. Collectively, these companies sit at #5 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Axon Enterprise is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for AXON's full-year earnings has moved 413.6% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Our latest available data shows that AXON has returned about 45.3% since the start of the calendar year. In comparison, Aerospace companies have returned an average of 27.8%. This means that Axon Enterprise is outperforming the sector as a whole this year.

Rolls-Royce Holdings PLC (RYCEY) is another Aerospace stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 106.6%.

The consensus estimate for Rolls-Royce Holdings PLC's current year EPS has increased 4.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Axon Enterprise belongs to the Aerospace - Defense Equipment industry, which includes 33 individual stocks and currently sits at #100 in the Zacks Industry Rank. On average, stocks in this group have gained 27.5% this year, meaning that AXON is performing better in terms of year-to-date returns. Rolls-Royce Holdings PLC is also part of the same industry.

Axon Enterprise and Rolls-Royce Holdings PLC could continue their solid performance, so investors interested in Aerospace stocks should continue to pay close attention to these stocks.

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This article originally published on Zacks Investment Research (zacks.com).

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