Tuesday's IBD 50 Stocks To Watch pick, Taser maker Axon Enterprise, is approaching a new buy point on the stock market today. That makes Axon stock one of the best stocks to watch right now. Axon shares dipped 0.2% Tuesday morning.
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.
Earlier this year, the Scottsdale, Ariz.-based company announced the availability of Axon Body Workforce, an adapted version of the body camera used by law enforcement that's designed for front line retail and health care workers.
On Feb. 27, Axon said that fourth-quarter revenue grew 29% to $432.1 million as earnings surged 60% to $1.12 a share, powered by demand for its latest Taser 10 weapon and software subscriptions.
William Blair analyst Jonathan Ho reiterated his outperform rating after the report. Ho touted Axon's "relentless focus on innovation" and "the clear improvements it brings both to officer safety and effectiveness."
Ho highlighted the growth of Axon's opportunity with real-time crime center and drone technology for law enforcement to manage evolving situations remotely.
Be sure to read how to adjust to changing market conditions, with IBD's new exposure levels.
Axon Stock Soars On Earnings
The day after it released earnings, Axon stock soared nearly 14%. Now, shares are consolidating tightly around their all-time highs and are forming a flat base on a weekly chart that offers a 325.63 buy point, according to IBD MarketSurge chart analysis. Axon stock is just 5% away from that new buy trigger.
Notably, the stock's newest formation is a later-stage base amid a price move that began back in October 2022 when it broke out past a 133.26 cup-base buy point. Later-stage bases offer less upside than earlier-stage ones and are more prone to failure.
Axon stock boasts a best-possible 99 IBD Composite Rating, according to IBD Stock Checkup. That makes it one of the best stocks to watch.
On the upside, the relative strength line is holding near its recent highs, even as the stock consolidates. That's a sign of strong stock market outperformance.
The RS line should hit a new high on the breakout day to reaffirm the stock's leadership status. Remember, the RS line measures a stock's price performance vs. the S&P 500 and is the blue line plotted on IBD Charts.
Best Stocks To Watch
Three recent IBD 50 Growth Stocks To Watch picks are among the best stocks to watch.
| Company | Symbol | Buy point | Type of base |
|---|---|---|---|
| Ascendis Pharma | 161 | Flat base | |
| JFrog | 48.81 | Consolidation | |
| Interactive Brokers | 112.50 | Tight area |
Source: IBD Data As Of April 3, 2024
Follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on the best stocks to buy and watch and the stock market.
