Axon Enterprise is No. 1 in its industry group, and it's among leading stocks overall, with perfect or near-perfect ratings all around. On Thursday, the Relative Strength Rating for Axon stock popped to 86, a whopping 24-point jump from 62 the day before, passing a benchmark along the way. Axon reported outstanding financial results on Tuesday and its stock jumped 14% Wednesday.
The 86 RS Rating puts law enforcement crowd control, less-than-lethal Taser device maker Axon stock in the top 14% of all stocks for price performance this past year. Research shows that stocks that go on to make the biggest gains tend to have an RS Rating over 80 in the early stages of their moves.
Axon Stock Ratings Really Shine
But its other ratings are dazzling. Axon stock owns a 99 Composite Rating, of a best-possible 99. And its 99 Earnings Per Share Rating is also tops, reflecting strong profit growth the past three years, with emphasis on the two most recent quarters. Scottsdale, Ariz.-based Axon has a B Accumulation/Distribution Rating, showing that institutional investors like ETFs and mutual funds are fairly heavy buyers of its stock.
See How IBD Helps You Make More Money In Stocks
Axon stock, which is on both the IBD 50 and IBD Sector Leaders screens, is building a consolidation with a 229.95 entry. See if it can break out in volume at least 40% higher than normal. Keep in mind that it's a later-stage consolidation, and those can succeed but are riskier than earlier-stage patterns. Thursday Axon rose 1.8%.
Profit Grew Every Quarter This Past Year
Axon's sales have been steady in the 30% growth range every quarter this past year. It's earnings growth has accelerated three quarters in a row. Sales grew 31% last quarter to $374.6 million, and its earnings soared 152% year over year to $1.11 per share. The prior three periods its EPS reversed from a 49% drop to a 52% gain and then a 96% jump.
Axon, originally known for its nonlethal Taser stun gun, now also sells body worn cameras for law enforcement and military use, and data storage systems to accompany them, among other products.
Axon stock holds the No. 1 rank among its peers in the 46-stock Security/Safety industry group. Napco Security, which makes intrusion and fire alarm systems, is No. 2. And MSA Safety, a maker of protective gear for fire and police agencies, is No. 3 in the group.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
The proprietary IBD Relative Strength Rating measures market leadership by showing how a stock's price movement over the last 52 weeks compares to that of other stocks on the major indexes.
