In the latest trading session, Axon Enterprise (AXON) closed at $549.86, marking a -9.89% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.01%. On the other hand, the Dow registered a gain of 0.03%, and the technology-centric Nasdaq increased by 0.17%.
The maker of stun guns and body cameras's stock has climbed by 6.66% in the past month, exceeding the Aerospace sector's gain of 5.69% and the S&P 500's gain of 0.78%.
The upcoming earnings release of Axon Enterprise will be of great interest to investors. The company is predicted to post an EPS of $1.65, indicating a 20.67% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $741.94 million, indicating a 29% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.35 per share and revenue of $2.74 billion. These totals would mark changes of +6.9% and 0%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Axon Enterprise. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. 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 78.93. This indicates a premium in contrast to its industry's Forward P/E of 37.32.
It's also important to note that AXON currently trades at a PEG ratio of 3.17. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Aerospace - Defense Equipment industry was having an average PEG ratio of 2.22.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. With its current Zacks Industry Rank of 52, this industry ranks in the top 22% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much 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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