Axon Enterprise (AAXN) closed at $50.65 in the latest trading session, marking a -0.71% move from the prior day. This move lagged the S&P 500's daily gain of 0.09%. At the same time, the Dow added 0.26%, and the tech-heavy Nasdaq lost 0.25%.
Heading into today, shares of the maker of stun guns and body cameras had gained 17.83% over the past month, outpacing the Industrial Products sector's gain of 9.57% and the S&P 500's gain of 7.92% in that time.
AAXN will be looking to display strength as it nears its next earnings release, which is expected to be February 26, 2019. In that report, analysts expect AAXN to post earnings of $0.11 per share. This would mark a year-over-year decline of 38.89%. Our most recent consensus estimate is calling for quarterly revenue of $105.21 million, up 11.16% from the year-ago period.
It is also important to note the recent changes to analyst estimates for AAXN. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which 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 impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. AAXN currently has a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that AAXN has a Forward P/E ratio of 55.99 right now. This represents a premium compared to its industry's average Forward P/E of 17.3.
We can also see that AAXN currently has a PEG ratio of 2.24. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AAXN's industry had an average PEG ratio of 1.69 as of yesterday's close.
The Security and Safety Services industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 191, which puts it in the bottom 26% of all 250+ industries.
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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.