That’s why Axon Enterprise (AXON) fell more than the overall market
That’s why Axon Enterprise (AXON) fell more than the overall market

Axon Enterprise (AXON) closed the latest trading session at $291.15, moving -0.68% from the previous day’s close. This change lagged the S&P 500’s loss of 0.16% on the day. The Dow, meanwhile, gained 0.04% and the Nasdaq, a tech-heavy index, lost 0.18%.

Prior to today’s trading, shares of the maker of stun guns and body cameras had gained 4.7% over the past month, outpacing the Industrial Products sector’s loss of 5.09% and the S&P 500’s gain of 3.15% in that time.

The investment community will be closely following Axon Enterprise’s earnings performance in the upcoming release. The company is expected to report earnings per share of $1.08, down 2.7% from the corresponding quarter last year. Our latest consensus estimate is calling for quarterly revenue of $476.34 million, up 27.16% from the year-ago period.

For the full fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.68 per share and revenue of $1.98 billion, representing year-over-year changes of +13.04% and +26.65%, respectively.

Investors should also pay attention to any recent revisions to analyst estimates for Axon Enterprise. Such recent changes typically indicate a changing landscape in near-term business trends. As a result, optimistic estimate revisions suggest that analysts are becoming positive about the company’s business health and profitability.

Our research suggests that these estimate changes are directly related to future stock price performance. To capitalize on this, we have developed the Zacks Rank, a proprietary model that takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an admirable track record of superior performance, which is independently audited, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus Estimate for earnings per share (EPS) remained stagnant. Currently, Axon Enterprise holds a Zacks Rank of #3 (Hold).

In terms of valuation, Axon Enterprise currently has a P/E ratio of 62.58, which represents a premium compared to the industry’s average P/E ratio of 21.49.

The Security and Protection Services industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 47, putting it in the top 19% of all 250+ industries.

The Zacks Industry Rank evaluates the strength of our individual industry groups by looking at the average Zacks Rank of the individual stocks that make up the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.

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By Aurora