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Headquartered in Scottsdale, Arizona, Axon Enterprise, Inc. (AXON) is a provider of public safety technology with a market cap of $27.98 billion. It is known for innovative solutions in less-lethal weapons, body-worn cameras, and digital evidence management. Axon empowers law enforcement agencies and communities to enhance safety and transparency. The company’s cutting-edge products and services are pivotal in driving advancements in public safety, fostering accountability, and ensuring the well-being of both officers and citizens.
Shares of AXON have significantly outperformed the broader market over the past year. The stock has gained 85.1% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 27%. In 2024 alone, the stock is up 43.5%, while the SPX has gained 18.1% on a YTD basis.
Narrowing the focus, AXON's outperformance is evident when measured against the SPDR S&P Aerospace & Defense ETF (XAR). The exchange-traded fund has gained 13.5% on a YTD basis.
AXON reported Q2 earnings on Aug. 6. The company reported a profit of $40.80 million, or $1.20 per share, surpassing Wall Street expectations of $1.06 per share. Also, the company's revenue of $504.10 million exceeded analysts’ estimates of $476.90 million. Axon Enterprise surged over 18% after reporting Q2 results and raising its FY24 revenue guidance.
For the current fiscal year, ending in December, analysts expect AXON’s EPS to decline 37% to $1.79 on a diluted basis. The company's earnings surprise history is mixed. It beat the consensus estimate in two of the last four quarters while missing on two other occasions.
Among the 15 analysts covering AXON stock, the consensus rating is a “Strong Buy.” That’s based on 12 “Strong Buy” ratings, two “Moderate Buys,” and one “Hold.”
This configuration is more bullish than three months ago, with 10 analysts recommending a “Strong Buy.”
On Aug. 8, Northland Securities analyst Michael Latimore maintained a “Buy” rating on Axon Enterprise, with a price target of $365, which indicates that the stock trades at a premium.
The mean price target of $378 represents a 2% premium compared to AXON’s current price levels. The Street-high price target of $400 suggests an upside potential of 7.9%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
