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In the latest market close, Axon Enterprise (AXON) reached $610.32, with a -0.5% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.29%. On the other hand, the Dow registered a loss of 0.32%, and the technology-centric Nasdaq decreased by 0.5%.
Shares of the maker of stun guns and body cameras have depreciated by 1.67% over the course of the past month, underperforming the Aerospace sector's gain of 5.01% and the S&P 500's gain of 2.52%.
The investment community will be closely monitoring the performance of Axon Enterprise in its forthcoming earnings report. The company is predicted to post an EPS of $1.51, indicating a 34.82% growth compared to the equivalent 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.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Axon Enterprise. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, Axon Enterprise holds a Zacks Rank of #2 (Buy).
From a valuation perspective, Axon Enterprise is currently exchanging hands at a Forward P/E ratio of 94.43. Its industry sports an average Forward P/E of 30.92, so one might conclude that Axon Enterprise is trading at a premium comparatively.
Also, we should mention that AXON has a PEG ratio of 3.17. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Aerospace - Defense Equipment stocks are, on average, holding a PEG ratio of 2.58 based on yesterday's closing prices.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. At present, this industry carries a Zacks Industry Rank of 59, placing it within the top 24% of over 250 industries.