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Arizona-based Axon Enterprise, Inc. (AXON) develops, manufactures, and sells conducted energy devices (CEDs) under the TASER brand. Valued at a market cap of $49.2 billion, the company offers conducted electrical weapons for the law enforcement, federal, military, corrections, private security, and personal defense markets.
Companies valued at over $10 billion are typically classified as “large-cap stocks,” and Axon Enterprise fits the label perfectly. The company is renowned for its law enforcement technology and a range of software and sensor products, including cloud-based evidence management software, body cameras, and in-car cameras.
AXON is currently trading 7.7% below its 52-week high of $698.67, reached on Dec. 6. Shares of this law enforcement technology company have increased by a whopping 69.9% over the past three months, significantly outperforming the broader SPDR S&P Aerospace & Defense ETF’s (XAR) 10% returns during the same time frame.
Moreover, in the longer term, AXON has rallied 160% over the past 52 weeks, significantly outpacing XAR’s 25% returns. On a YTD basis, shares of AXON have gained nearly 149.7%, massively exceeding XAR’s 24.3% gains over the same time frame.
To confirm its bullish trend, AXON has been trading above its 200-day moving average since the past year and has remained above its 50-day moving average since late August.
Shares of AXON soared by a massive 28.7% following its strong Q3 earnings release on Nov. 7. The company’s top line increased 31.6% year-over-year to $544.3 million and surpassed the Wall Street estimates by 3.6%, while its adjusted EPS of $1.45, improved 18.9% from a year ago and exceeded the forecasted figure by 21%.
Robust growth in TASER and Sensor revenues, with increased adoption of premium software offerings, primarily led to AXON’s strong Q3 performance. Moreover, the company continues to benefit from its innovative product leadership and deep customer relationships. Noting its over 30% annual revenue growth in each of the first three quarters of 2024, the company raised its full-year 2024 revenue outlook to approximately $2.07 billion, over 32% annual growth, which might have further enhanced investor confidence.
AXON’s outperformance becomes more evident when compared to its rival, Kratos Defense & Security Solutions, Inc. (KTOS), which gained 26.8% over the past 52 weeks and 32.3% on a YTD basis.
Looking at AXON’s recent outperformance, analysts remain strongly optimistic about its prospects. The stock has a consensus rating of “Strong Buy” from the 15 analysts covering it. However, as of writing, the company is trading above its mean price target of $604.07.
