Axon Enterprise (AXON) closed the latest trading day at $652.18, indicating a -0.19% change from the previous session's end. This move was narrower than the S&P 500's daily loss of 0.51%. Elsewhere, the Dow lost 0.75%, while the tech-heavy Nasdaq lost 0.28%.
The maker of stun guns and body cameras's shares have seen an increase of 9.55% over the last month, surpassing the Aerospace sector's gain of 3.19% and the S&P 500's gain of 2.87%.
The upcoming earnings release of Axon Enterprise will be of great interest to investors. The company's earnings per share (EPS) are projected to be $1.51, reflecting a 34.82% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $567.56 million, showing a 31.34% escalation compared to the year-ago quarter.
It is also important to note the recent changes to analyst estimates for Axon Enterprise. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Currently, Axon Enterprise is carrying a Zacks Rank of #2 (Buy).
From a valuation perspective, Axon Enterprise is currently exchanging hands at a Forward P/E ratio of 100.59. This indicates a premium in contrast to its industry's Forward P/E of 29.43.
Investors should also note that AXON has a PEG ratio of 3.38 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Aerospace - Defense Equipment stocks are, on average, holding a PEG ratio of 2.42 based on yesterday's closing prices.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 153, putting it in the bottom 40% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the 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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