In the latest trading session, Axon Enterprise (AXON) closed at $511.28, marking a -3.07% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.89% for the day. Elsewhere, the Dow saw an upswing of 0.74%, while the tech-heavy Nasdaq appreciated by 1.29%.
Heading into today, shares of the maker of stun guns and body cameras had gained 28.64% over the past month, outpacing the Aerospace sector's loss of 6.03% and the S&P 500's loss of 0.63%.
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 $1.89, reflecting a 10.85% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $868.35 million, indicating a 29.89% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $7.83 per share and a revenue of $3.65 billion, demonstrating changes of +14.31% and +31.45%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Axon Enterprise. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Axon Enterprise presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Axon Enterprise is currently trading at a Forward P/E ratio of 67.37. This indicates a premium in contrast to its industry's Forward P/E of 36.26.
It's also important to note that AXON currently trades at a PEG ratio of 2.23. 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 2.28 as of yesterday's close.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 79, putting it in the top 33% 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 Report
This article originally published on Zacks Investment Research (zacks.com).