AXON ENTERPRISE INC (NASDAQ:AXON) – A Strong Growth Stock with Technical Momentum

AXON ENTERPRISE INC (NASDAQ:AXON) was identified by our screener as a strong growth stock with a favorable technical setup. The company, known for its public safety technology solutions, shows impressive growth metrics while also displaying a bullish price pattern. Below, we examine why AXON stands out based on both fundamental and technical factors.

Fundamental Strengths

• Strong Growth Metrics: AXON has demonstrated robust revenue growth, with a 59.79% increase over the past year and an average annual growth rate of 31.44% over several years. Earnings per share (EPS) have also expanded significantly, rising 39.55% in the last year.
• Profitability: The company maintains a solid gross margin of 59.83%, outperforming 90.77% of its peers in the Aerospace & Defense industry. Its return on equity (ROE) of 18.19% is well above the industry average.
• Financial Health: AXON has a healthy balance sheet, with a current ratio of 2.83 and a quick ratio of 2.62, indicating strong liquidity. The Altman-Z score of 11.10 suggests low bankruptcy risk.

Technical Setup

• Positive Trends: Both short-term and long-term trends are bullish, with the stock trading near its 52-week high.
• Support Levels: Multiple support zones exist between $723.74 and $738.65, providing a potential cushion against downside moves.
• Recent Momentum: A recent Pocket Pivot signal—where price rises on higher-than-average volume—suggests accumulation by investors.

While AXON’s valuation appears expensive with a P/E ratio of 122.21, its strong growth trajectory and technical strength make it a candidate for further research.

For more stocks with similar characteristics, check our Strong Growth Stocks with Good Technical Setup Ratings screener.
Review the full fundamental report for AXON or the technical analysis for deeper insights.

Disclaimer

This is not investment advice. The observations here are based on data at the time of writing, and market conditions can change. Always conduct your own research before making investment decisions.