News Image

Why AXON ENTERPRISE INC (NASDAQ:AXON) qualifies as a high growth stock.

By Mill Chart

Last update: May 6, 2024

In this article we will dive into AXON ENTERPRISE INC (NASDAQ:AXON) as a possible candidate for growth investing. Investors should always do their own research, but we noticed AXON ENTERPRISE INC showing up in our CANSLIM growth screen, which makes it worth to investigate a bit more.

Looking into the canslim metrics of AXON ENTERPRISE INC

  • With a favorable trend in its quarter-to-quarter (Q2Q) earnings per share (EPS), AXON ENTERPRISE INC highlights its ability to generate increasing profitability, showcasing a 60.0% growth.
  • AXON ENTERPRISE INC has achieved significant quarter-to-quarter (Q2Q) revenue growth of 28.58%, signaling its ability to capture market opportunities and drive top-line expansion. This growth underscores the company's effective execution and its potential for continued success.
  • AXON ENTERPRISE INC has experienced 32.14% growth in EPS over a 3-year period, demonstrating its ability to generate sustained and positive earnings momentum.
  • With a favorable Return on Equity (ROE) of 10.8%, AXON ENTERPRISE INC demonstrates its ability to deliver attractive returns for shareholders. This metric highlights the company's effective management of assets and its profitability.
  • AXON ENTERPRISE INC has exhibited strong Relative Strength(RS) in recent periods, with a current 90.11 rating. This indicates the stock's ability to outperform the broader market and reflects its competitive position. AXON ENTERPRISE INC shows promising potential for continued price momentum.
  • Maintaining a Debt-to-Equity ratio of 0.42, AXON ENTERPRISE INC demonstrates a conservative financial approach. This signifies the company's focus on minimizing debt burdens while preserving a solid equity position.
  • With institutional shareholders at 75.45%, AXON ENTERPRISE INC demonstrates a healthy ownership distribution. This reflects a mix of institutional and individual investors, creating a market environment that may foster increased trading activity and price discovery.

In-Depth Technical Analysis of NASDAQ:AXON

ChartMill assigns a Technical Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple technical indicators and properties.

Taking everything into account, AXON scores 10 out of 10 in our technical rating. Both in the recent history as in the last year, AXON has proven to be a steady performer, scoring decent points in every aspect analyzed.

  • Both the short term and long term trends are positive. This is a very positive sign.
  • Looking at the yearly performance, AXON did better than 90% of all other stocks. On top of that, AXON also shows a nice and consistent pattern of rising prices.
  • AXON is part of the Aerospace & Defense industry. There are 65 other stocks in this industry. AXON outperforms 75% of them.
  • AXON is currently trading near its 52 week high, which is a good sign. The S&P500 Index is trading in the upper part of its 52 week range, but not near new highs, so AXON is leading the market.
  • In the last month AXON has a been trading in the 291.35 - 329.87 range, which is quite wide. It is currently trading near the high of this range.

For an up to date full technical analysis you can check the technical report of AXON

Zooming in on the fundamentals.

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

Overall AXON gets a fundamental rating of 6 out of 10. We evaluated AXON against 65 industry peers in the Aerospace & Defense industry. AXON has an excellent financial health rating, but there are some minor concerns on its profitability. AXON is valued quite expensive, but it does show an excellent growth. With these ratings, AXON could be worth investigating further for growth investing!.

Check the latest full fundamental report of AXON for a complete fundamental analysis.

More growth stocks can be found in our CANSLIM screen.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.