We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Reasons to Hold Axon Enterprise (AXON) in Your Portfolio Now
Read MoreHide Full Article
Axon Enterprise, Inc. (AXON - Free Report) has been benefiting from strength in its TASER segment, driven by strong orders for devices and cartridge products. Stable demand for virtual reality training services also supports the segment’s growth. Solid momentum in Axon Evidence and cloud services, driven by growth in the number of users and average revenue per user, is driving the Software & Sensors segment’s growth. In the first quarter, revenues from TASER and Software & Sensors segments increased 33.1% and 34.9%, respectively, on a year-over-year basis.
The company remains committed to investing in product innovations, automation and manufacturing facilities to drive growth. For instance, AXON launched its next-generation body-worn camera, Axon Body 4. Shipment of this camera began in June 2023 and the customer response has been strong so far. This, along with the growing popularity of its TASER 10 device, led Axon Enterprise to provide a bullish guidance. For 2024, it anticipates to generate revenues in the range of $1.94-$1.99 billion, indicating year-over-year growth of 26% at the midpoint.
The company believes in adding complementary businesses to its portfolio via acquisitions. In January 2024, it acquired Fusus, a leader in real-time crime center technology. The combination of Fusus’ real-time situational awareness expertise with Axon Enterprise’s public safety technology should enable the latter to boost its product portfolio. Also, the acquisition of Sky-Hero (July 2023), an innovator in drones and ground-based vehicles, expanded Axon Air's portfolio.
Image Source: Zacks Investment Research
In the past six months, this Zacks Rank #3 (Hold) company has gained 16.9% compared with the industry’s 14.2% growth.
However, the company has been witnessing rising costs and expenses over time. In 2023, its cost of sales soared 31.8% year over year. Also, in the first quarter, the metric climbed 44.5% year over year. An increase in raw material costs might continue to hurt its margins and profitability in the quarters ahead.
Stocks to Consider
Some better-ranked stocks from the same space are presented below.
NAPCO Security Technologies (NSSC - Free Report) presently has a Zacks Rank of 2. NSSC delivered a trailing four-quarter average earnings surprise of 16%. In the past 60 days, the Zacks Consensus Estimate for NAPCO Security’s 2024 earnings has increased 2.3%.
Brady Corporation (BRC - Free Report) presently carries a Zacks Rank of 2 and has a trailing four-quarter earnings surprise of 6.7%, on average. The Zacks Consensus Estimate for BRC’s fiscal 2024 (ending July 2024) earnings has increased 3.3% in the past 60 days.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Reasons to Hold Axon Enterprise (AXON) in Your Portfolio Now
Axon Enterprise, Inc. (AXON - Free Report) has been benefiting from strength in its TASER segment, driven by strong orders for devices and cartridge products. Stable demand for virtual reality training services also supports the segment’s growth. Solid momentum in Axon Evidence and cloud services, driven by growth in the number of users and average revenue per user, is driving the Software & Sensors segment’s growth. In the first quarter, revenues from TASER and Software & Sensors segments increased 33.1% and 34.9%, respectively, on a year-over-year basis.
The company remains committed to investing in product innovations, automation and manufacturing facilities to drive growth. For instance, AXON launched its next-generation body-worn camera, Axon Body 4. Shipment of this camera began in June 2023 and the customer response has been strong so far. This, along with the growing popularity of its TASER 10 device, led Axon Enterprise to provide a bullish guidance. For 2024, it anticipates to generate revenues in the range of $1.94-$1.99 billion, indicating year-over-year growth of 26% at the midpoint.
The company believes in adding complementary businesses to its portfolio via acquisitions. In January 2024, it acquired Fusus, a leader in real-time crime center technology. The combination of Fusus’ real-time situational awareness expertise with Axon Enterprise’s public safety technology should enable the latter to boost its product portfolio. Also, the acquisition of Sky-Hero (July 2023), an innovator in drones and ground-based vehicles, expanded Axon Air's portfolio.
Image Source: Zacks Investment Research
In the past six months, this Zacks Rank #3 (Hold) company has gained 16.9% compared with the industry’s 14.2% growth.
However, the company has been witnessing rising costs and expenses over time. In 2023, its cost of sales soared 31.8% year over year. Also, in the first quarter, the metric climbed 44.5% year over year. An increase in raw material costs might continue to hurt its margins and profitability in the quarters ahead.
Stocks to Consider
Some better-ranked stocks from the same space are presented below.
Allegion plc (ALLE - Free Report) currently carries a Zacks Rank #2 (Buy). ALLE delivered a trailing four-quarter average earnings surprise of 8.6%. In the past 60 days, the Zacks Consensus Estimate for its 2024 earnings has inched up 0.1%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
NAPCO Security Technologies (NSSC - Free Report) presently has a Zacks Rank of 2. NSSC delivered a trailing four-quarter average earnings surprise of 16%. In the past 60 days, the Zacks Consensus Estimate for NAPCO Security’s 2024 earnings has increased 2.3%.
Brady Corporation (BRC - Free Report) presently carries a Zacks Rank of 2 and has a trailing four-quarter earnings surprise of 6.7%, on average. The Zacks Consensus Estimate for BRC’s fiscal 2024 (ending July 2024) earnings has increased 3.3% in the past 60 days.