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

AXON ENTERPRISE INC (NASDAQ:AXON) was identified as a potential candidate for CANSLIM investors through our stock screener. The company demonstrates strong growth metrics, solid profitability, and favorable technical trends, making it worth a closer look for growth-focused investors.

Why AXON Fits the CANSLIM Criteria

• C – Current Earnings & Sales Growth:
  AXON reported a 22.6% year-over-year increase in quarterly EPS and a 31% rise in quarterly revenue. These figures meet the CANSLIM requirement for accelerating growth.

• A – Annual Earnings Growth:
  The company’s 3-year EPS growth stands at 36.3%, well above the 25% threshold recommended by the CANSLIM strategy.

• N – New Highs & Leadership:
  AXON is trading near its 52-week high, a positive signal for momentum investors. Its relative strength of 97.58 indicates it outperforms nearly all other stocks in the market.

• S – Supply & Demand:
  Institutional ownership is at 82.9%, below the 85% threshold, suggesting room for further institutional buying. The debt-to-equity ratio of 0.68 is manageable, aligning with CANSLIM’s preference for financially stable companies.

• L – Market Leader:
  AXON ranks in the top 3% of stocks based on relative strength, confirming its leadership position in the Aerospace & Defense industry.

• I – Institutional Sponsorship:
  The company has strong institutional backing, with ownership levels indicating continued interest from large investors.

• M – Market Direction:
  With both short-term and long-term trends positive for the S&P 500, the broader market environment supports growth-oriented strategies like CANSLIM.

Technical & Fundamental Highlights

• Technical Analysis:
  AXON has a perfect technical rating of 10/10, with bullish trends across all time frames. The stock is consolidating near highs, presenting a potential entry point. View the full technical report here.

• Fundamental Analysis:
  The company scores well on profitability (ROE of 18.2%) and growth but trades at a premium valuation. While expensive, its strong growth trajectory may justify the price. See the full fundamental report.

For more CANSLIM-compliant stocks, explore our predefined CANSLIM screener.

Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but you should always conduct your own analysis before making investment decisions.