In the latest trading session, Axon Enterprise (AXON) closed at $610.40, marking a -1.63% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 1.16%. Elsewhere, the Dow saw an upswing of 1.21%, while the tech-heavy Nasdaq appreciated by 1.18%.
Prior to today's trading, shares of the maker of stun guns and body cameras had gained 4.99% lagged the Aerospace sector's gain of 7.9% and outpaced the S&P 500's loss of 0.42%.
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, the latest consensus estimate predicts the revenue to be $753.65 million, indicating a 31.04% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.35 per share and a revenue of $2.74 billion, representing changes of +6.9% and 0%, respectively, from the prior 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.
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, 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Axon Enterprise is currently a Zacks Rank #3 (Hold).
Looking at valuation, Axon Enterprise is presently trading at a Forward P/E ratio of 80.26. For comparison, its industry has an average Forward P/E of 37.51, which means Axon Enterprise is trading at a premium to the group.
One should further note that AXON currently holds a PEG ratio of 3.23. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Aerospace - Defense Equipment industry stood at 2.29 at the close of the market yesterday.
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 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.
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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