Axon Enterprise (AXON) ended the recent trading session at $393.08, demonstrating a -2.26% change from the preceding day's closing price. This change lagged the S&P 500's 0.26% gain on the day. On the other hand, the Dow registered a gain of 0.24%, and the technology-centric Nasdaq increased by 0.36%.
The maker of stun guns and body cameras's stock has dropped by 20.9% in the past month, falling short of the Aerospace sector's gain of 1.1% and the S&P 500's gain of 5.98%.
Investors will be eagerly watching for the performance of Axon Enterprise in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.66, reflecting a 17.73% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $779.78 million, indicating a 29.18% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $8.12 per share and revenue of $3.57 billion. These totals would mark changes of +18.54% and +28.31%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Axon Enterprise. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 past month, there's been no change in the Zacks Consensus EPS estimate. Axon Enterprise presently features a Zacks Rank of #3 (Hold).
With respect to valuation, Axon Enterprise is currently being traded at a Forward P/E ratio of 49.55. This indicates a premium in contrast to its industry's Forward P/E of 37.26.
It is also worth noting that AXON currently has a PEG ratio of 1.49. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Aerospace - Defense Equipment industry currently had an average PEG ratio of 2.66 as of yesterday's close.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 144, putting it in the bottom 41% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Axon Enterprise, Inc (AXON): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).