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

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Axon Enterprise (AXON - Free Report) closed at $196.15 in the latest trading session, marking a -1.43% move from the prior day. This change lagged the S&P 500's 0.01% gain on the day. Elsewhere, the Dow lost 0.22%, while the tech-heavy Nasdaq added 0.67%.

Coming into today, shares of the maker of stun guns and body cameras had lost 7.61% in the past month. In that same time, the Industrial Products sector lost 4.88%, while the S&P 500 lost 4.45%.

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 $0.76 per share. This would mark year-over-year growth of 26.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $393.77 million, up 26.31% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.55 per share and revenue of $1.52 billion, which would represent changes of +62.1% and +28.02%, respectively, from the prior year.

Any recent changes to analyst estimates for Axon Enterprise should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. 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 56.08. This valuation marks a premium compared to its industry's average Forward P/E of 19.32.

The Security and Safety Services industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 153, which puts it in the bottom 40% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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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