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Axon Enterprise (AXON) Stock Slides as Market Rises: Facts to Know Before You Trade

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In the latest market close, Axon Enterprise (AXON - Free Report) reached $293.50, with a -0.04% movement compared to the previous day. This move lagged the S&P 500's daily gain of 0.87%. Meanwhile, the Dow gained 0.67%, and the Nasdaq, a tech-heavy index, added 1.11%.

Heading into today, shares of the maker of stun guns and body cameras had lost 7.18% over the past month, lagging the Industrial Products sector's loss of 2.02% and the S&P 500's loss of 3.97% in that time.

The investment community will be closely monitoring the performance of Axon Enterprise in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.97, reflecting a 10.23% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $437.52 million, indicating a 27.54% increase compared to the same quarter of the previous year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.49 per share and revenue of $1.93 billion, indicating changes of +8.45% and +23.59%, respectively, compared to the previous year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Axon Enterprise. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.41% higher. Axon Enterprise presently features a Zacks Rank of #3 (Hold).

From a valuation perspective, Axon Enterprise is currently exchanging hands at a Forward P/E ratio of 65.36. This expresses a premium compared to the average Forward P/E of 20.25 of its industry.

The Security and Safety Services industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 91, which puts it in the top 37% 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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