In the latest trading session, Axon Enterprise (AXON) closed at $698.02, marking a -10.23% move from the previous day. This change lagged the S&P 500's daily loss of 0.29%. On the other hand, the Dow registered a loss of 0.37%, and the technology-centric Nasdaq decreased by 0.34%.
Shares of the maker of stun guns and body cameras witnessed a gain of 1.11% over the previous month, trailing the performance of the Aerospace sector with its gain of 5%, and the S&P 500's gain of 3.08%.
The investment community will be closely monitoring the performance of Axon Enterprise in its forthcoming earnings report. On that day, Axon Enterprise is projected to report earnings of $1.65 per share, which would represent year-over-year growth of 13.79%. Simultaneously, our latest consensus estimate expects the revenue to be $698.22 million, showing a 28.28% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $6.93 per share and a revenue of $2.71 billion, demonstrating changes of +16.67% and +30.25%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Axon Enterprise. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, Axon Enterprise holds a Zacks Rank of #3 (Hold).
Looking at its valuation, Axon Enterprise is holding a Forward P/E ratio of 112.21. Its industry sports an average Forward P/E of 36.08, so one might conclude that Axon Enterprise is trading at a premium comparatively.
We can additionally observe that AXON currently boasts a PEG ratio of 3.93. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Aerospace - Defense Equipment industry had an average PEG ratio of 2.53.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. At present, this industry carries a Zacks Industry Rank of 52, placing it within the top 22% of over 250 industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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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