In the latest close session, Axon Enterprise (AXON) was down 10.25% at $351.40. The stock's change was less than the S&P 500's daily gain of 0.62%. On the other hand, the Dow registered a gain of 0.58%, and the technology-centric Nasdaq increased by 0.83%.
Shares of the maker of stun guns and body cameras have depreciated by 24.35% over the course of the past month, underperforming the Aerospace sector's loss of 5.4%, and the S&P 500's gain of 0.8%.
The upcoming earnings release of Axon Enterprise will be of great interest to investors. The company is expected to report EPS of $1.66, up 17.73% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $779.78 million, up 29.18% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $8.12 per share and revenue of $3.57 billion, which would represent changes of +18.54% and +28.31%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Axon Enterprise. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, Axon Enterprise is carrying a Zacks Rank of #3 (Hold).
Investors should also note Axon Enterprise's current valuation metrics, including its Forward P/E ratio of 48.24. This signifies a premium in comparison to the average Forward P/E of 37.19 for its industry.
It's also important to note that AXON currently trades at a PEG ratio of 1.45. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Aerospace - Defense Equipment industry had an average PEG ratio of 2.53 as trading concluded yesterday.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 149, which puts it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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).