What Makes Axon Enterprise (AXON) the Premier Operating System For Public Safety?

ClearBridge Investments, an investment management company, released its “ClearBridge Mid Cap Growth Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. Following the soft start to the year, the midcap fund rebounded in the second quarter, driven by demand for AI and a low-quality rally, which enabled the growth stocks to overcome the tariff-led uncertainty. The strategy failed to outpace the benchmark, despite strong absolute returns, due to limited exposure to several of the rally’s leading participants. However, the firm is optimistic about the ability of the mid-cap growth universe to offer attractive long-term compounders. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, ClearBridge Mid Cap Growth Strategy highlighted stocks such as Axon Enterprise, Inc. (NASDAQ:AXON). Axon Enterprise, Inc. (NASDAQ:AXON) manufactures conducted energy devices (CEDs) under the TASER brand. The one-month return of Axon Enterprise, Inc. (NASDAQ:AXON) was 1.88%, and its shares gained 112.62% of their value over the last 52 weeks. On August 27, 2025, Axon Enterprise, Inc. (NASDAQ:AXON) stock closed at $769.68 per share, with a market capitalization of $60.423 billion.

ClearBridge Mid Cap Growth Strategy stated the following regarding Axon Enterprise, Inc. (NASDAQ:AXON) in its second quarter 2025 investor letter:

"Despite strong absolute returns, the ClearBridge Mid Cap Growth Strategy failed to keep pace with its benchmark in the second quarter due to limited exposure to several of the rally’s leading participants - Palantir Technologies and Cloudflare in information technology (IT), Axon Enterprise, Inc. (NASDAQ:AXON) in industrials and Roblox in communication services. We also initiated a new position in Axon — a leading provider of public safety software solutions and hardware including TASER devices and body cameras. Axon saw strong performance as it continued to innovate and broaden its safety and productivity offerings, actions which are driving greater adoption and strong growth in a large total addressable market. With an installed base of over one million software subscribers, Axon is increasingly positioned as the premier operating system for public safety."

Axon Enterprise, Inc. (NASDAQ:AXON) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 62 hedge fund portfolios held Axon Enterprise, Inc. (NASDAQ:AXON) at the end of the second quarter, which was 61 in the previous quarter. In the second quarter of 2025, Axon Enterprise, Inc. (NASDAQ:AXON) generated $669 million in revenue, representing a 33% increase year-over-year and marking its 14th consecutive quarter of revenue growth exceeding 25%. While we acknowledge the potential of Axon Enterprise, Inc. (NASDAQ:AXON) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Axon Enterprise, Inc. (NASDAQ:AXON) and shared a bullish thesis on the company. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.