Axon Enterprise, Inc. (AXON) shares soared 6% in the last trading session to close at $468.42. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 28.7% loss over the past four weeks.
Axon’s rally is largely driven by optimism over higher TASER 10 handle and cartridge volume within the Connected Devices segment. An increase in users and increased adoption of premium software within the Software & Services segment, also bodes well for the company.
This maker of stun guns and body cameras is expected to post quarterly earnings of $1.94 per share in its upcoming report, which represents a year-over-year change of +65.8%. Revenues are expected to be $935.35 million, up 31.6% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Axon, the consensus EPS estimate for the quarter has been revised 1.5% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on AXON going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Axon is a member of the Zacks Aerospace - Defense Equipment industry. One other stock in the same industry, CAE (CAE), finished the last trading session 1.4% higher at $24.05. CAE has returned -8.9% over the past month.
For CAE, the consensus EPS estimate for the upcoming report has changed +3% over the past month to $0.2. This represents a change of +17.7% from what the company reported a year ago. CAE currently has a Zacks Rank of #3 (Hold).
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This article originally published on Zacks Investment Research (zacks.com).