Axon Enterprise (AXON) closed at $403.02 in the latest trading session, marking a +2.64% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.58%. Meanwhile, the Dow gained 0.69%, and the Nasdaq, a tech-heavy index, added 1.05%.
Prior to today's trading, shares of the maker of stun guns and body cameras had lost 14.52% lagged the Aerospace sector's loss of 4.81% and the S&P 500's gain of 0.97%.
Analysts and investors alike will be keeping a close eye on the performance of Axon Enterprise in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.94, indicating a 65.81% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $931.13 million, indicating a 31.03% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.88 per share and revenue of $3.68 billion, indicating changes of +15.04% and +32.31%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Axon Enterprise. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.08% rise in the Zacks Consensus EPS estimate. Axon Enterprise currently has a Zacks Rank of #1 (Strong Buy).
Investors should also note Axon Enterprise's current valuation metrics, including its Forward P/E ratio of 49.8. This signifies a premium in comparison to the average Forward P/E of 30.85 for its industry.
Also, we should mention that AXON has a PEG ratio of 1.99. 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 average PEG ratio for the Aerospace - Defense Equipment industry stood at 1.9 at the close of the market yesterday.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. With its current Zacks Industry Rank of 72, this industry ranks in the top 30% of all industries, numbering over 250.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Axon Enterprise, Inc (AXON): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).