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If you're a beginner investor, the idea of creating a portfolio from the ground up can feel like an impossible goal to achieve. That's why you should start by looking at stocks that are set to beat the market over the next 12 months, a strategy that's been proven to generate strong returns.
Now, let's break down why adding this one exceptional stock, highlighted below, to your portfolio could be a recipe for success.
Why You Should Pay Attention to Axon Enterprise (AXON)
Headquartered in Scottsdale, AZ, Axon Enterprise, Inc. develops and manufactures weapons for selling to U.S. state and local governments, the U.S. federal government, international government customers and commercial enterprises. Focused on global public safety, Axon’s suite of products includes conducted energy devices, body-worn cameras, in-car cameras, cloud-hosted digital evidence management solutions, productivity software and real-time operations capabilities. The company generates the majority of its revenues through direct sales, including its online store. Its market for body-worn and in-car cameras is exposed to intense competition from Motorola Solutions, Panasonic Corp., Reveal Media, Safe Fleet and Digital Ally Inc., among others. The market for software solutions is vulnerable to competition from Motorola Solutions, Panasonic Corp., IBM, Oracle, FotoWare and Vidizmo, among others. On a geographical basis, the company has operations in the United States (85% of 2024 net sales) and other international markets (15%). Axon operates under the following two segments
On June 3, 2020, AXON was added to the Zacks Focus List at $97.85 per share. Shares have increased 515.7% to $602.46 since then.
One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2025. The Zacks Consensus Estimate has increased $0.02 to $6.11. AXON boasts an average earnings surprise of 21.6%.
Earnings for Axon Enterprise are forecasted to see growth of 2.9% for the current fiscal year as well.
Since stock prices respond to earnings estimate revisions, it can be very profitable to buy stocks with an increased earnings outlook. By buying a Focus List stock like AXON, then, you're likely getting into a company whose future earnings estimates will be raised, potentially leading to price momentum.
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Axon Enterprise, Inc (AXON) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).