In the latest close session, Axon Enterprise (AXON) was down 5.1% at $483.58. The stock's performance was behind the S&P 500's daily loss of 0.43%. Elsewhere, the Dow saw a downswing of 0.37%, while the tech-heavy Nasdaq depreciated by 0.94%.
The stock of maker of stun guns and body cameras has fallen by 10.27% in the past month, lagging the Aerospace sector's gain of 4.5% and the S&P 500's gain of 0.89%.
Investors will be eagerly watching for the performance of Axon Enterprise in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.67, showcasing a 19.71% downward movement from the corresponding quarter of the prior year. 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 full year, the Zacks Consensus Estimates are projecting earnings of $6.37 per share and revenue of $2.74 billion, which would represent changes of +7.24% and 0%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Axon Enterprise. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. As of now, Axon Enterprise holds a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Axon Enterprise has a Forward P/E ratio of 65.73 right now. This denotes a premium relative to the industry average Forward P/E of 37.26.
Investors should also note that AXON has a PEG ratio of 2.64 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Aerospace - Defense Equipment industry had an average PEG ratio of 2.21.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This industry, currently bearing a Zacks Industry Rank of 62, finds itself in the top 26% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during 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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