The Aerospace group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Axon Enterprise (AXON) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.
Axon Enterprise is a member of the Aerospace sector. This group includes 77 individual stocks and currently holds a Zacks Sector Rank of #2. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Axon Enterprise is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for AXON's full-year earnings has moved 15.3% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
According to our latest data, AXON has moved about 9.6% on a year-to-date basis. At the same time, Aerospace stocks have gained an average of 7.3%. This means that Axon Enterprise is outperforming the sector as a whole this year.
Another Aerospace stock, which has outperformed the sector so far this year, is General Dynamics (GD). The stock has returned 12% year-to-date.
The consensus estimate for General Dynamics' current year EPS has increased 1.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Axon Enterprise belongs to the Aerospace - Defense Equipment industry, which includes 37 individual stocks and currently sits at #51 in the Zacks Industry Rank. This group has gained an average of 16.8% so far this year, so AXON is slightly underperforming its industry in this area.
On the other hand, General Dynamics belongs to the Aerospace - Defense industry. This 39-stock industry is currently ranked #110. The industry has moved +3.4% year to date.
Axon Enterprise and General Dynamics could continue their solid performance, so investors interested in Aerospace stocks should continue to pay close attention to these stocks.
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Axon Enterprise, Inc (AXON): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).