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Here's Why Axon Enterprise (AXON) Fell More Than Broader Market

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Axon Enterprise (AXON - Free Report) ended the recent trading session at $291.15, demonstrating a -0.68% swing from the preceding day's closing price. This change lagged the S&P 500's 0.16% loss on the day. Meanwhile, the Dow gained 0.04%, and the Nasdaq, a tech-heavy index, lost 0.18%.

Prior to today's trading, shares of the maker of stun guns and body cameras had gained 4.7% over the past month. This has outpaced the Industrial Products sector's loss of 5.09% and the S&P 500's gain of 3.15% in that time.

The investment community will be paying close attention to the earnings performance of Axon Enterprise in its upcoming release. The company is forecasted to report an EPS of $1.08, showcasing a 2.7% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $476.34 million, up 27.16% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.68 per share and a revenue of $1.98 billion, representing changes of +13.04% and +26.65%, respectively, from the prior year.

Investors should also take note of any recent adjustments to 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.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 past month, the Zacks Consensus EPS estimate remained stagnant. As of now, Axon Enterprise holds a Zacks Rank of #3 (Hold).

Digging into valuation, Axon Enterprise currently has a Forward P/E ratio of 62.58. This signifies a premium in comparison to the average Forward P/E of 21.49 for its industry.

The Security and Safety Services industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 47, which puts it in the top 19% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 follow all of these stock-moving metrics, and many more, on Zacks.com.


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