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Axon Enterprise (AXON) Dips More Than Broader Markets: What You Should Know

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Axon Enterprise (AXON - Free Report) closed the most recent trading day at $185, moving -1.9% from the previous trading session. This move lagged the S&P 500's daily loss of 1.11%. Elsewhere, the Dow lost 0.61%, while the tech-heavy Nasdaq lost 2.13%.

Prior to today's trading, shares of the maker of stun guns and body cameras had gained 5.16% over the past month. This has outpaced the Industrial Products sector's gain of 4.63% and lagged the S&P 500's gain of 7% in that time.

Axon Enterprise will be looking to display strength as it nears its next earnings release, which is expected to be February 28, 2023. The company is expected to report EPS of $0.50, up 8.7% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $304.76 million, up 40.07% from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for Axon Enterprise. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Within the past 30 days, our consensus EPS projection remained stagnant. Axon Enterprise currently has a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that Axon Enterprise has a Forward P/E ratio of 74.48 right now. This valuation marks a premium compared to its industry's average Forward P/E of 19.64.

The Security and Safety Services industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 110, putting it in the top 44% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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