How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Axon Enterprise (AXON) ten years ago? It may not have been easy to hold on to AXON for all that time, but if you did, how much would your investment be worth today?
Axon Enterprise's Business In-Depth
With that in mind, let's take a look at Axon Enterprise's main business drivers.
Headquartered in Scottsdale, AZ, Axon Enterprise, Inc. develops and manufactures weapons for selling to U.S. state and local governments, the U.S. federal government, international government customers and commercial enterprises. Focused on global public safety, Axon’s suite of products includes conducted energy devices, body-worn cameras, in-car cameras, cloud-hosted digital evidence management solutions, productivity software and real-time operations capabilities. The company generates the majority of its revenues through direct sales, including its online store. Its market for body-worn and in-car cameras is exposed to intense competition from Motorola Solutions, Panasonic Corp., Reveal Media, Safe Fleet and Digital Ally Inc., among others. The market for software solutions is vulnerable to competition from Motorola Solutions, Panasonic Corp., IBM, Oracle, FotoWare and Vidizmo, among others. On a geographical basis, the company has operations in the United States (85% of 2024 net sales) and other international markets (15%). Axon operates under the following two segments:
TASER (39.3% of total revenues in 2024): This segment caters to the manufacture of conducted energy devices ("CED") sold under its brand name, TASER. The CEDs is a weapon system designed to temporarily incapacitate a subject with the help of an electrical current. It develops tools, such as TASER devices (energy weapon systems), virtual reality training services and consumer devices, to support public safety officers in de-escalating situations, avoiding or minimizing the use of force and aiding consumer personal protection. In January 2023, the company launched its next-generation energy device, TASER 10, which has a 10-probe capacity and a maximum range of 45 feet. These are sold to law enforcement agencies, attorneys, emergency services personnel and the U.S. military.
Software and Sensors (60.7%): This segment focuses on the manufacture of fully integrated hardware and cloud-based software solutions. Within sensors, products such as Axon body cameras and Axon Fleet in-car systems, among other devices, cater to varied needs, including transparency, real-time situational awareness, and capturing evidence and integrating with software workflows. The segment’s offerings also include Axon Evidence, which is the largest cloud-hosted public safety data repository of public safety video data and other sorts of digital evidence.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Axon Enterprise ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in April 2015 would be worth $20,853.58, or a 1,985.36% gain, as of April 29, 2025, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
The S&P 500 rose 161.44% and the price of gold increased 167.57% over the same time frame in comparison.
Analysts are forecasting more upside for AXON too.
Axon is witnessing strength across its business. Its TASER unit is driven by solid demand for TASER 10 devices as well as higher cartridge revenues. The addition of new users and associated devices to the Axon network, and strong response to Axon body cameras and accessories bode well for the Software and Sensors segment’s growth. Benefits from acquired assets are likely to drive its performance in the quarters ahead. Driven by strength in its businesses, Axon provided bullish guidance for 2024. However, escalating operating expenses, due to higher compensation expenses and business integration activities, have been weighing on its performance. Despite the recent signs of easing, lingering supply-chain disruptions are likely to impede the company’s growth. Given its international presence, foreign exchange headwinds may be worrying.
The stock is up 14.55% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2025. The consensus estimate has moved up as well.
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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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