In the latest close session, Axon Enterprise (AXON) was down 1.92% at $629.22. This change lagged the S&P 500's daily loss of 0.53%. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, lost 1%.
The maker of stun guns and body cameras's shares have seen an increase of 15.57% over the last month, surpassing the Aerospace sector's gain of 9.86% and the S&P 500's gain of 2.06%.
The upcoming earnings release of Axon Enterprise will be of great interest to investors. The company's earnings per share (EPS) are projected to be $1.65, reflecting a 20.67% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $753.65 million, up 31.04% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $6.35 per share and a revenue of $2.74 billion, demonstrating changes of +6.9% and 0%, 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. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Axon Enterprise is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, Axon Enterprise is at present trading with a Forward P/E ratio of 82.97. For comparison, its industry has an average Forward P/E of 37.58, which means Axon Enterprise is trading at a premium to the group.
Investors should also note that AXON has a PEG ratio of 3.33 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 industry had an average PEG ratio of 2.26 as trading concluded yesterday.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. Currently, this industry holds a Zacks Industry Rank of 46, positioning it in the top 19% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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