In the latest market close, Axon Enterprise (AXON) reached $572.48, with a -1.03% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily loss of 2.24%. At the same time, the Dow lost 1.73%, and the tech-heavy Nasdaq lost 3.07%.
Coming into today, shares of the maker of stun guns and body cameras had gained 7.12% in the past month. In that same time, the Aerospace sector lost 1.9%, while the S&P 500 lost 4.17%.
Investors will be eagerly watching for the performance of Axon Enterprise in its upcoming earnings disclosure. 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. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $587.76 million, up 27.57% from the year-ago period.
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.
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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Axon Enterprise currently has a Zacks Rank of #3 (Hold).
Investors should also note Axon Enterprise's current valuation metrics, including its Forward P/E ratio of 90.71. This signifies a premium in comparison to the average Forward P/E of 27.71 for its industry.
We can also see that AXON currently has a PEG ratio of 3.26. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Aerospace - Defense Equipment industry held an average PEG ratio of 2.28.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. With its current Zacks Industry Rank of 22, this industry ranks in the top 9% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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