Taser and nonlethal weapon maker Axon Enterprise is Thursday's pick for IBD 50 Growth Stocks To Watch. Axon stock is nearing a buy point from a cup base, as it climbs back near its all-time high.
In addition to its close-range Taser energy weapons, Axon makes body and fleet cameras, along with drones and evidence management software. Its equipment is used by law enforcement, federal departments, U.S. armed forces, and corrections and security officers.
Axon also offers specialized virtual reality product safety training and offers civilian self-defense Taser products that are legal for use in 49 states.
Axon ranks No. 1 out of 47 stocks in the Security and Safety group. The industry group ranks No. 20 out of the 197 industry groups covered by Investor's Business Daily. Further, Axon stock is on IBD SwingTrader and the IBD Leaderboard watchlist.
Shares were pulling back by nearly 2% Thursday morning, after three straight days of gains.
Stocks To Buy And Watch: Top IPOs, Big And Small Caps, Growth Stocks
Axon Stock Nears Buy Point
The IBD 50 stock is recovering from a 22% drop that began after the stock reversed from its December high.
Axon stock is climbing up the right side of a cup base and nearing a 698.67 entry, according to MarketSurge pattern recognition. The buy point is also its all-time high reached on Dec. 6, following a 49% run-up after Axon reported third-quarter results on Nov. 7.
The stock pulled back to begin forming the base in lighter-than-average volume and undercut its 10-week moving average, triggering a sell signal in early January. But shares have reclaimed the 10-week line.
Shares have climbed around 13% so far this year, after soaring by 130% in 2024.
Axon Earnings Growth Looks To Continue
Axon topped third-quarter adjusted earnings and sales estimates on Nov. 7, and gave a fourth-quarter revenue outlook that was above views. Profit rose 38% on a 32% sales increase.
Fourth-quarter forecasts call for a 25% profit boost with sales rising 31%. Full-year 2024 earnings estimates called for 24% growth and have been recently revised up to 22% in 2025. Although a date has not been announced, Axon normally reports its fourth-quarter results at the end of February.
Mutual funds have been piling in the stock, with 1,953 owning shares in December. That's up from 1,782 in September.
Also, its Accumulation/Distribution Rating of B indicates moderate institutional buying over the last 13 weeks.
Axon stock holds a best-possible 99 Composite Rating with a 96 Earnings Per Share Rating and a 97 Relative Strength Rating.
More IBD 50 Stock Analysis
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
