In the latest trading session, Axon Enterprise (AXON) closed at $640.46, marking a +2.91% move from the previous day. This change outpaced the S&P 500's 0.45% loss on the day. On the other hand, the Dow registered a loss of 0.25%, and the technology-centric Nasdaq decreased by 1.16%.
The maker of stun guns and body cameras's shares have seen an increase of 32.12% over the last month, surpassing the Aerospace sector's gain of 6.21% and the S&P 500's gain of 2.14%.
The investment community will be paying close attention to the earnings performance of Axon Enterprise in its upcoming release. On that day, Axon Enterprise is projected to report earnings of $1.89 per share, which would represent a year-over-year decline of 10.85%. Meanwhile, our latest consensus estimate is calling for revenue of $868.35 million, up 29.89% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.83 per share and a revenue of $3.64 billion, signifying shifts of +14.31% and +30.99%, respectively, from the last 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. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing 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 #1 (Strong Buy).
In terms of valuation, Axon Enterprise is presently being traded at a Forward P/E ratio of 79.48. This indicates a premium in contrast to its industry's Forward P/E of 40.01.
Also, we should mention that AXON has a PEG ratio of 2.64. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Aerospace - Defense Equipment industry held an average PEG ratio of 2.59.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. Currently, this industry holds a Zacks Industry Rank of 51, positioning it in the top 21% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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 Report
This article originally published on Zacks Investment Research (zacks.com).