Axon stock shot to new highs Wednesday, headlining today's RS Line Blue Dot screen, which identifies other stocks that have withstood the stock market tumble quite well.
The RS Line Blue Dot list, a tool in IBD MarketSurge, identifies stocks whose relative strength lines are hitting new highs while the stock is building a new base or breaking out past a new buy point. That's a key strength during the ongoing stock market correction.
Remember, the RS line measures a stock's price performance vs. the S&P 500 and is the blue line on every IBD chart. If the market's down, good stocks will outperform by treading water. When the market rebounds, the stocks with best relative strength should bounce back even stronger than the market.
Besides Axon Enterprise, other stocks unfazed by the market tumble include Tetra Tech, Howmet Aerospace and Tenet Healthcare.
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Axon Stock Breaks Out On Earnings
Axon stock surged 24% midday Wednesday, breaking out past a 329.87 buy point in a consolidation, according to IBD MarketSurge chart analysis.
Late Tuesday, Axon reported strong Q2 results and raised its full-year 2024 revenue guidance above estimates. Earnings rose 9% vs. the year-ago period to $1.20 per share. Sales jumped 35% to $504.1 million.
Its Draft One product, launched in April, writes the first draft of a police report based on Axon Body Camera recordings. Axon says the AI-enabled product saves more than 50% of the time in writing reports. While immaterial to Q2 results, Draft One has generated over $100 million in yet-to-be recorded revenue faster than any other Axon software product.
"Our customers' response to Draft One is better than anything I've seen, better than we could have imagined," Axon CEO Patrick Smith said in a Tuesday afternoon earnings call.
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Other Stocks Near Buy Points
In early August, Tetra Tech surged above a 221.40 buy point in a flat base, according to MarketSurge pattern recognition. And the stock is nearly extended amid a two-day rebound. Shares fell modestly during the Aug. 1-5 market sell-off.
On July 31, Tetra Tech reported strong fiscal third-quarter earnings and sales results, raised its financial outlook and announced a 5-for-1 stock split. Earnings grew 23% to $1.59 per share on revenue of $1.34 billion. Sales climbed 11% vs. the year-ago period.
Boeing supplier Howmet Aerospace is in the 5% buy zone past a 85.52 cup-base entry. The stock fell 9% Aug. 1-5 but found support near the buy point.
Last week, the company reported strong earnings and guidance, as well as big hikes to its dividend and stock buyback program.
Tenet Healthcare is at the top of its buy zone above a 142.35 flat-base entry. Shares pulled back moderately to around the entry and have been rebounding.
In late July, the operator of hospitals and surgery centers blew past second-quarter earnings estimates and sharply raised its full-year outlook amid boom times for health care service providers.
Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on the best stocks to buy and watch and the Dow Jones Industrial Average.
