Here's Why Axon Enterprise (AXON) Fell More Than Broader Market
In the latest trading session, Axon Enterprise (AXON) closed at $254.25, marking a -0.19% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.06%. Elsewhere, the Dow saw an upswing of 0.35%, while the tech-heavy Nasdaq depreciated by 0.76%.
The maker of stun guns and body cameras's stock has dropped by 1.39% in the past month, falling short of the Industrial Products sector's gain of 0.15% and the S&P 500's gain of 3.36%.
The upcoming earnings release of Axon Enterprise will be of great interest to investors. On that day, Axon Enterprise is projected to report earnings of $0.86 per share, which would represent year-over-year growth of 22.86%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $418.97 million, up 24.64% from the year-ago period.
It's also important for investors to be aware of any recent modifications to analyst estimates for Axon Enterprise. 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.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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. The Zacks Consensus EPS estimate has moved 0.4% lower within the past month. Axon Enterprise is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, Axon Enterprise is currently trading at a Forward P/E ratio of 61.5. This valuation marks a premium compared to its industry's average Forward P/E of 21.53.
The Security and Safety Services industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 110, positioning it in the top 44% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Axon Enterprise, Inc (AXON) : Free Stock Analysis Report
