In the latest trading session, Axon Enterprise (AXON) closed at $612.98, marking a -1.28% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.01%. At the same time, the Dow added 0.55%, and the tech-heavy Nasdaq lost 0.44%.
The stock of maker of stun guns and body cameras has risen by 9.24% in the past month, leading the Aerospace sector's gain of 7.87% and the S&P 500's gain of 0.86%.
Analysts and investors alike will be keeping a close eye on the performance of Axon Enterprise in its upcoming earnings disclosure. On that day, Axon Enterprise is projected to report earnings of $1.65 per share, which would represent a year-over-year decline of 20.67%. Meanwhile, our latest consensus estimate is calling for revenue of $753.65 million, up 31.04% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.35 per share and a revenue of $2.74 billion, indicating changes of +6.9% and 0%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Axon Enterprise. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, Axon Enterprise holds a Zacks Rank of #3 (Hold).
Investors should also note Axon Enterprise's current valuation metrics, including its Forward P/E ratio of 80.31. Its industry sports an average Forward P/E of 35.81, so one might conclude that Axon Enterprise is trading at a premium comparatively.
Investors should also note that AXON has a PEG ratio of 3.23 right now. 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. The Aerospace - Defense Equipment was holding an average PEG ratio of 2.17 at yesterday's closing price.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This industry, currently bearing a Zacks Industry Rank of 71, finds itself in the top 29% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
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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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