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Axon Enterprise (AXON) Gains As Market Dips: What You Should Know

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Axon Enterprise (AXON - Free Report) closed at $188.96 in the latest trading session, marking a +0.01% move from the prior day. This change outpaced the S&P 500's 0.07% loss on the day. Meanwhile, the Dow gained 0.31%, and the Nasdaq, a tech-heavy index, lost 3.22%.

Heading into today, shares of the maker of stun guns and body cameras had gained 11.82% over the past month, outpacing the Industrial Products sector's gain of 3.75% and the S&P 500's gain of 4.64% in that time.

Axon Enterprise will be looking to display strength as it nears its next earnings release. In that report, analysts expect Axon Enterprise to post earnings of $0.50 per share. This would mark year-over-year growth of 8.7%. Meanwhile, our latest consensus estimate is calling for revenue of $304.76 million, up 40.07% from the prior-year quarter.

Any recent changes to analyst estimates for Axon Enterprise should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. Axon Enterprise is currently a Zacks Rank #1 (Strong Buy).

Digging into valuation, Axon Enterprise currently has a Forward P/E ratio of 74.63. This valuation marks a premium compared to its industry's average Forward P/E of 20.93.

The Security and Safety Services industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 172, putting it in the bottom 32% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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