When putting together a stock watchlist, a winning strategy is to look for stocks with an 80 or higher Relative Strength Rating. Axon Enterprise is one stock that just reached the mark, now earning a score of 81. Axon stock fell 0.8% to 116.19 Wednesday. Its stock was up slightly in after-hours trading.
The 81 RS Rating bumps security devices maker Axon stock up into an elite group. Market research finds that the stocks that go on to make the biggest gains typically have an 80 or better RS Rating as they begin their biggest runs.
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Axon Stock Rises Amid Continued Expansion
Originally known for its iconic Taser stun gun, Axon has not only defended its leading position there, it has broadened into an umbrella security company offering police and other law enforcement agencies everything from data storage capability to wearable camera systems. Still, the company holds onto its roots. It's preparing for the upcoming Tasercon public safety training event Jan. 23-26 in Las Vegas.
Among its other significant ratings Axon Enterprise has an outstanding 96 EPS Rating, putting it in the top 4% of companies for recent quarters and years profit growth. Axon stock carries an 86 Composite Rating, of a best possible 99. And it sports a B- Accumulation/Distribution Rating on an A+ to E scale. The B- rating indicates that institutional investors such as ETFs and insurance company funds are moderately heavy buyers.
Like many companies Axon stock hit a multiyear high at 209 last November then it began consolidating, dropping as low as 82.49 in mid-May then turning up. It's risen to a 116.19 close Wednesday on strong double-digit sales and profit growth the last two quarters. Axon's EPS rose 45% then 16% in that time, while revenue grew 31% both quarters. It's not in a proper buying range right now. See if it is able to form and break out of a proper chart pattern such as a cup with handle or flat base.
Among Top 5 In Industry Group
Axon stock earns the No. 3 rank among its peers in the Security/Safety industry group. Intrusion and fire alarms company Napco Security and street cleaning gear and warning sirens maker Federal Signal are also among the group's highest-rated stocks.
When you're researching the best stocks to buy and watch, keep a close on eye on relative price strength.
IBD's unique rating identifies market leadership with a 1 (worst) to 99 (best) score. The rating shows how a stock's price behavior over the last 52 weeks stacks up against all the other stocks in our database.
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