Axon Enterprise’s Stock Soars as Company Advances Public Safety Technology
With a market valuation of approximately $48.2 billion, Arizona-based Axon Enterprise, Inc. (AXON) is leading the way in public safety technology. The company aims to reduce gun-related deaths involving law enforcement and civilians by 50% by 2033. Its innovative public safety operating system includes TASER devices, body cameras, and cloud-supported evidence management tools, marking a significant shift in modern policing.
A Year of Impressive Stock Gains for Axon
Over the past year, shares of Axon have experienced an impressive surge of 178.3%, significantly outperforming the broader S&P 500 Index’s ($SPX) 31.8% gain. In 2024 alone, the stock has delivered an astonishing 145.8% return, again surpassing the S&P’s 25.8% year-to-date growth.
Comparative Success Against Industry Peers
Axon’s outstanding performance is even clearer against the iShares Global Industrials ETF’s (EXI) 26.9% annual return and its 17.8% year-to-date gains, showcasing the company’s strong market position.
Innovative Solutions Drive Growth
The company’s growth trajectory is bolstered by its expanding role in law enforcement and a steady stream of innovative products. Axon exemplifies leadership in addressing public safety challenges. Following the release of a robust Q3 earnings report on Nov. 7, AXON shares jumped 28.9% on Nov. 8, reflecting strong investor confidence.
Continued Revenue Growth and Strong Earnings
Despite its established TASER line, Axon thrives as a high-growth company. It has reported over 30% annual revenue growth for the first three quarters of fiscal 2024—marking an impressive 11 quarters of growth exceeding 25%. In Q3, revenue soared 32% year-over-year to $544 million, driven by strong demand for its solutions.
Adjusted earnings also saw a robust increase, climbing 38% annually to $1.45 per share, surpassing Wall Street expectations by 21%. However, projections for the current fiscal year, ending in December, indicate a decline in earnings per share (EPS) to $1.53, down 46% from the previous year.
Analysts Remain Optimistic
The consensus rating among 15 analysts for AXON stock stands as a “Strong Buy,” comprising 12 “Strong Buy,” two “Moderate Buy,” and one “Hold” rating. This optimistic outlook has remained stable over the past three months.
Updated Price Targets Reflect Confidence
On Nov. 11, Northcoast Research revised its price target for AXON stock from $448 to $650, maintaining a “Buy” rating. This target implies a modest upside of 2.5% from current prices. While the stock is trading above its average analyst price target of $553.71, the highest target of $750 suggests potential additional gains of up to 18.1%.
On the date of publication, Anushka Mukherjee 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.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
