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Scottsdale, Arizona-based Axon Enterprise, Inc. (AXON) develops advanced technology and weapons products for law enforcement, military, and civilian use. With a market cap of $42.9 billion, Axon is renowned for its TASER devices, body-worn cameras, and cloud-based evidence management solutions, which are pivotal in modern public safety.
Companies worth $10 billion or more are categorized as "large-cap stocks." Axon Enterprise fits this description perfectly, with its market cap exceeding this threshold. The company’s innovative product portfolio, including TASER devices, Axon body cameras, and digital evidence platforms, underscores its leadership in the public safety space.
Despite its notable strengths, Axon stock has tanked 21.8% from its all-time high of $715.99 touched on Feb. 18. Furthermore, Axon has declined 11.4% over the past three months, underperforming the S&P 500 Index’s ($SPX) 4.4% dip during the same time frame.
However, over the longer term, Axon’s performance looks much more impressive. Axon has soared 42.4% over the past six months and 77.2% over the past year, outperforming SPX’s marginal 61 bps dip over the past six months and 8.1% gains over the past year.
To confirm the overall bullish trend and recent downturn, Axon has consistently traded above its 200-day moving average over the past year, but it dropped below its 50-day moving average in the last month.
Axon Enterprise’s stock soared 15.3% in the trading session after the release of its impressive FY 2024 results on Feb. 25. Driven by increasing demand for TASER and its other products, Axon reported an impressive 33% year-over-year growth in revenue to $2.1 billion, marking its third consecutive year of over 30% annual revenue growth. Meanwhile, Axon Cloud & Services’ revenue surged 44% year-over-year to $806 million. The company also reported a net income of $377 million, supported by its efficient operations and profitability.
For fiscal 2025, Axon expects its revenues to range between $2.55 billion to $2.65 billion, reflecting approximately 25% annual growth at the midpoint. In 2024, Axon achieved notable milestones, including surpassing $1 billion in annual recurring revenue, shipping over 200,000 TASERs, and expanding its software user base to over 1 million. With a strategic focus on innovation and customer collaboration, Axon is positioned to sustain its growth trajectory and drive long-term value for stakeholders.
However, Axon has lagged behind its peer Elbit Systems Ltd.’s (ESLT) 113.7% surge over the past six months and 101% gains over the past year.
Among the 15 analysts covering the Axon stock, the consensus rating is a “Strong Buy.” Its mean price target of $688.15 represents a 22.9% upside potential from current price levels.
