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Axon Enterprise (AXON) Stock Slides as Market Rises: Facts to Know Before You Trade

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In the latest trading session, Axon Enterprise (AXON - Free Report) closed at $382.57, marking a -0.83% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.03%. At the same time, the Dow lost 0.04%, and the tech-heavy Nasdaq gained 0.2%.

Shares of the maker of stun guns and body cameras have appreciated by 3.4% over the course of the past month, outperforming the Industrial Products sector's gain of 2.71% and the S&P 500's gain of 1.54%.

The investment community will be paying close attention to the earnings performance of Axon Enterprise in its upcoming release. The company's earnings per share (EPS) are projected to be $1.21, reflecting a 18.63% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $526.43 million, up 27.28% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $4.91 per share and revenue of $2.04 billion, which would represent changes of +18.6% and +30.55%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Axon Enterprise. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Axon Enterprise presently features a Zacks Rank of #3 (Hold).

From a valuation perspective, Axon Enterprise is currently exchanging hands at a Forward P/E ratio of 78.61. Its industry sports an average Forward P/E of 22.71, so one might conclude that Axon Enterprise is trading at a premium comparatively.

One should further note that AXON currently holds a PEG ratio of 3.78. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Security and Safety Services industry currently had an average PEG ratio of 2.18 as of yesterday's close.

The Security and Safety Services industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 150, finds itself in the bottom 41% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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