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In the latest market close, Axon Enterprise (AXON) reached $572.48, with a -1.03% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily loss of 2.24%. At the same time, the Dow lost 1.73%, and the tech-heavy Nasdaq lost 3.07%.
Coming into today, shares of the maker of stun guns and body cameras had gained 7.12% in the past month. In that same time, the Aerospace sector lost 1.9%, while the S&P 500 lost 4.17%.
Investors will be eagerly watching for the performance of Axon Enterprise in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.34, marking a 16.52% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $587.76 million, up 27.57% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.38 per share and a revenue of $2.61 billion, representing changes of +7.41% and +25.15%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Axon Enterprise. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Axon Enterprise currently has a Zacks Rank of #3 (Hold).
Investors should also note Axon Enterprise's current valuation metrics, including its Forward P/E ratio of 90.71. This signifies a premium in comparison to the average Forward P/E of 27.71 for its industry.
We can also see that AXON currently has a PEG ratio of 3.26. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Aerospace - Defense Equipment industry held an average PEG ratio of 2.28.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. With its current Zacks Industry Rank of 22, this industry ranks in the top 9% of all industries, numbering over 250.