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Scottsdale, Arizona-based Axon Enterprise, Inc. (AXON) engages in the development, manufacture, and sale of conducted electrical weapons for the law enforcement, federal, military, corrections, private security, and personal defense markets. With a market cap of $28.9 billion, Axon operates through Software and Sensors, and TASER Weapons segments.
Companies worth $10 billion or more are generally described as "large-cap stocks," Axon fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the aerospace & defense industry.
Axon touched its all-time high of $391.55 in yesterday’s trading session before slightly pulling back. AXON has gained 32.8% over the past three months, outperforming the Industrial Select Sector SPDR Fund’s (XLI) 8.9% gains over the same time frame.
Over the longer term, AXON stock looks even more attractive. AXON gained 91.2% over the past 52 weeks and 50.9% in 2024, substantially outperforming XLI’s 28.7% gains over the past year and 17.7% returns on a YTD basis.
To confirm the bullish trend, Axon has mostly traded above its 50-day and 200-day moving averages since October 2023 with slight fluctuations.
Shares of Axon soared 18.4% in the trading session after the release of its Q2 earnings on Aug. 6. The company continued its impressive growth trajectory, reporting a 34.6% year-over-year increase in net sales, reaching $504.1 million. This growth was driven by strong performance across product categories and customer verticals, underpinned by Axon’s market-leading innovation. This potentially positions Axon for sustainable, profitable growth in the long term.
Its net sales from services saw a remarkable 48% increase, totaling $208.9 million, while product sales grew by 26.4% to $295.2 million. Additionally, it reported massive net margin expansion, leading to a 228.5% surge in net income to $40.8 million, bolstering investor confidence.
Axon’s competitor, Byrna Technologies Inc. (BYRN), gained 372.4% over the past year and 135.8% in 2024, outperforming Axon’s double-digit returns.
Among the 15 analysts covering the AXON stock, the consensus rating is a “Strong Buy.” Although Axon is trading above its mean price target of $385.31, the Street-high target of $430 suggests a potential upside of 10.3% from current price levels.
On the date of publication, Aditya Sarawgi 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.
