In the latest market close, Axon Enterprise (AXON) reached $551.25, with a -1.53% movement compared to the previous day. The stock's performance was ahead of the S&P 500's daily loss of 3.46%. Elsewhere, the Dow lost 2.5%, while the tech-heavy Nasdaq lost 4.31%.
Coming into today, shares of the maker of stun guns and body cameras had gained 0.35% in the past month. In that same time, the Aerospace sector lost 1.6%, while the S&P 500 lost 5.27%.
Analysts and investors alike will be keeping a close eye on the performance of Axon Enterprise in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.34, reflecting a 16.52% increase from the same quarter last 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 full year, the Zacks Consensus Estimates are projecting earnings of $6.38 per share and revenue of $2.61 billion, which would represent changes of +7.41% and +25.15%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Axon Enterprise. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Axon Enterprise is currently sporting a Zacks Rank of #3 (Hold).
Looking at valuation, Axon Enterprise is presently trading at a Forward P/E ratio of 79.04. This represents a premium compared to its industry's average Forward P/E of 25.39.
One should further note that AXON currently holds a PEG ratio of 2.84. 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. Aerospace - Defense Equipment stocks are, on average, holding a PEG ratio of 2.05 based on yesterday's closing prices.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 24, putting it in the top 10% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the 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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