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Axon Enterprise (AXON) Falls More Steeply Than Broader Market: What Investors Need to Know

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Axon Enterprise (AXON - Free Report) closed the most recent trading day at $266.71, moving -1.58% from the previous trading session. This move lagged the S&P 500's daily loss of 0.1%. Elsewhere, the Dow gained 0.33%, while the tech-heavy Nasdaq lost 0.3%.

Shares of the maker of stun guns and body cameras witnessed a gain of 8.09% over the previous month, beating the performance of the Industrial Products sector with its gain of 5.44% and the S&P 500's gain of 5.78%.

The upcoming earnings release of Axon Enterprise will be of great interest to investors. The company is forecasted to report an EPS of $0.86, showcasing a 22.86% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $418.97 million, indicating a 24.64% growth compared to the corresponding quarter of the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Axon Enterprise. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Axon Enterprise is currently sporting a Zacks Rank of #4 (Sell).

In terms of valuation, Axon Enterprise is currently trading at a Forward P/E ratio of 65.42. This valuation marks a premium compared to its industry's average Forward P/E of 21.95.

The Security and Safety Services industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 60, positioning it in the top 24% 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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