In the latest close session, Axon Enterprise (AXON) was up +1.41% at $794.25. This change outpaced the S&P 500's 1.11% gain on the day. On the other hand, the Dow registered a gain of 1.19%, and the technology-centric Nasdaq increased by 1.43%.
The stock of maker of stun guns and body cameras has risen by 7.09% in the past month, leading the Aerospace sector's gain of 6.17% and the S&P 500's gain of 3.92%.
The investment community will be closely monitoring the performance of Axon Enterprise in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $1.54, reflecting a 28.33% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $641.21 million, reflecting a 27.2% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.34 per share and revenue of $2.65 billion, indicating changes of +6.73% and +27.17%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Axon Enterprise. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, Axon Enterprise is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Axon Enterprise has a Forward P/E ratio of 123.57 right now. For comparison, its industry has an average Forward P/E of 37.74, which means Axon Enterprise is trading at a premium to the group.
We can also see that AXON currently has a PEG ratio of 4.35. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. AXON's industry had an average PEG ratio of 2.84 as of yesterday's close.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This industry, currently bearing a Zacks Industry Rank of 53, finds itself in the top 22% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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