On Thursday, Axon Enterprise hit a noteworthy benchmark. Its Relative Strength (RS) Rating jumped into the rarefied 90-plus percentile with an improvement to 93, up from 88 the day before. The 93 RS Rating means Axon stock tops 93% of stocks for price performance over the past 52 weeks.
Axon Stock Pops Nearly 14% On Earnings Gain
Taser and body camera maker Axon on Tuesday reported outstanding earnings. On Wednesday Axon stock shot up 13.8% for the day in 536% higher than average volume. Scottsdale, Ariz.-based Axon reported a 60% year-over-year surge in fourth quarter earnings Tuesday, to $1.12 per share. Revenue climbed 29% to $432.1 million.
Axon started out making the Taser nonlethal electronic weapon, primarily for law enforcement agencies. It's spread into adjacent markets including body-worn cameras and systems to store camera footage and other data.
Among its other key ratings Axon has a perfect 99 Earnings Per Share Rating. Its Composite Rating is nearly as good at 98. It has an A SMR Rating (sales + profit margins + return on equity) on an A-to-E scale. And Axon stock's Accumulation/Distribution Rating of B shows fairly strong buying by institutional investors like ETFs and university funds.
See How IBD Helps You Make More Money In Stocks
The IBD 50 stock is now considered extended and out of buy range after clearing a 217.61 buy point in a third-stage cup with handle. See if the stock forms a new pattern or follow-on buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week moving average. On Thursday Axon gave back a stingy less than 1% of the prior day's nearly 14% gain.
Among Top 5 In Highly Rated Group
Axon stock earns the No. 3 rank among its peers in the 46-stock Security/Safety industry group. Cadre Holdings, NAPCO Security Techs and Lakeland Industries are also among the top 5 highly rated stocks in the group. The group itself has an A Relative Strength (RS) Rating.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength. IBD's unique RS Rating tracks technical performance by showing how a stock's price action over the last 52 weeks compares to that of the other stocks in our database. The market's biggest winners typically have an 80 or higher RS Rating in the early stages of their moves.
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