Evaluating AXON ENTERPRISE INC (NASDAQ:AXON) for Growth Investment Opportunities.

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

• In the most recent financial report, AXON reported a 85.71% increase in quarterly earnings compared to the previous quarter. This notable growth indicates positive momentum in the company's financials, suggesting an upward trend
• AXON has achieved significant quarter-to-quarter (Q2Q) revenue growth of 33.09%, 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.
• The EPS of AXON has shown consistent growth over a 3-year period, indicating the company's ability to generate increasing earnings over time.
• The Return on Equity (ROE) of AXON stands at 21.92%, reflecting the company's strong profitability and effective utilization of shareholder equity. This metric signifies the company's ability to generate returns for its investors.
• The Relative Strength (RS) of AXON has been consistently solid, with a current 93.8 rating. This highlights the stock's ability to exhibit sustained price strength and signifies its competitive advantage.
• AXON's Debt/Equity ratio of 0.29 suggests a healthy balance between debt financing and shareholder equity.
• The ownership composition of AXON reflects a balanced investor ecosystem, with institutional shareholders owning 82.93%. This indicates a broader market participation and potential for increased trading liquidity.

Analyzing the Technical Aspects

At ChartMill, a crucial aspect of their analysis is the assignment of a Technical Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous technical indicators and properties.

Taking everything into account, AXON scores 5 out of 10 in our technical rating. Although AXON is scoring some points because its good overall performance in the market in the past year, recent evolutions are not that positive. Both the medium and short term picture give negative signs.

• Looking at the yearly performance, AXON did better than 93% of all other stocks. On top of that, AXON also shows a nice and consistent pattern of rising prices.
• AXON is one of the better performing stocks in the Aerospace & Defense industry, it outperforms 76% of 65 stocks in the same industry.
• Both the short term and long term trends are neutral. So this is not the most entertaining stock around.
• AXON is currently trading in the middle of its 52 week range. This is in line with the S&P500 Index, which is also trading in the middle of its range.
• In the last month AXON has a been trading in the 480.18 - 600.99 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

Our latest full technical report of AXON contains the most current technical analsysis.

Fundamental analysis of AXON

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

AXON gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 65 industry peers in the Aerospace & Defense industry. While AXON has a great health rating, its profitability is only average at the moment. AXON is valued quite expensively, but it does show have an excellent growth rating. This makes AXON very considerable for growth investing!

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

Our CANSLIM screen will find you more ideas suited for growth investing.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.