AXON ENTERPRISE INC (NASDAQ:AXON) – A Strong Contender for CANSLIM Investors

AXON ENTERPRISE INC (NASDAQ:AXON) was identified through a CANSLIM-based screen, showcasing strong growth characteristics and technical momentum. The company, known for its public safety technology solutions, meets several key criteria of the CANSLIM strategy, making it an interesting candidate for growth-focused investors.

Key CANSLIM Criteria Met by AXON

• Earnings Growth (C & A):

  • Quarterly EPS growth (Q2Q) of 22.6%, exceeding the CANSLIM threshold of 20%.
  • Three-year EPS growth of 36.3%, well above the 25% minimum requirement.
  • Revenue growth (Q2Q) of 31.0%, indicating strong sales momentum.

• Leadership & Relative Strength (L):

  • A high Relative Strength (CRS) of 98.09, placing it in the top tier of market performers.
  • Outperforms 93% of its peers in the Aerospace & Defense industry.

• Institutional Sponsorship (I):

  • Institutional ownership stands at 82.9%, below the 85% threshold, suggesting room for further institutional interest.

• Financial Health (S):

  • Debt-to-equity ratio of 0.68, comfortably below the CANSLIM-recommended maximum of 2.
  • Strong liquidity metrics, including a current ratio of 2.83 and quick ratio of 2.62.

• Technical Strength (M & N):

  • Both short-term and long-term trends are positive, with the stock trading near its 52-week high.
  • The stock has gained 153% over the past year, demonstrating strong upward momentum.

Fundamental & Technical Overview

AXON’s fundamental analysis highlights solid profitability, with an ROE of 18.2% and improving margins. However, its valuation remains high, with a P/E ratio of 117.87, which may deter value-focused investors.

The technical analysis rates AXON a perfect 10/10, citing consistent performance across all time frames. The stock is currently consolidating after a strong rally, suggesting potential for further upside if it breaks resistance near $733-$743.

For more CANSLIM-compliant stocks, explore our pre-configured CANSLIM screener.

Disclaimer

This is not investment advice. Always conduct your own research before making investment decisions.