AXON ENTERPRISE INC (NASDAQ:AXON) - A High Growth Momentum Stock With Strong Technical Setup

AXON ENTERPRISE INC (NASDAQ:AXON) stands out as a high-growth momentum candidate with a favorable technical setup. The company, known for its public safety technology solutions, has demonstrated strong earnings and revenue growth while presenting a technically sound chart pattern.

Growth Momentum Highlights

• Earnings Growth: AXON reported a 39.5% year-over-year increase in EPS (TTM), with recent quarterly EPS growth at 22.6%. The company has consistently beaten earnings estimates, with an average surprise of 21.9% over the last four quarters.
• Revenue Expansion: Sales growth remains strong, with a 59.8% increase over the past year. Quarterly revenue growth was 31.0%, supported by accelerating demand for its public safety solutions.
• Profit Margins: The latest quarterly profit margin stands at 14.6%, reflecting solid operational efficiency. Free cash flow growth surged by 314.6% year-over-year, indicating strong cash generation.
• Analyst Revisions: While next-year EPS estimates saw a slight downward revision (-3.2%), revenue expectations remain positive, with a 2.0% upward adjustment over the past three months.

Technical Strength & Setup

AXON’s technical profile is robust, with a Technical Rating of 10/10 and a Setup Rating of 8/10, signaling both strong momentum and a consolidation phase. Key observations from the technical report include:

• Uptrend Confirmation: The stock is in a clear uptrend across short and long-term timeframes, outperforming 97% of the market over the past year.
• Support Levels: Multiple support zones exist below the current price, including a key area between $755.99 and $764.88, providing a potential stop-loss reference.
• Bull Flag Pattern: The recent pullback after a strong rally suggests a potential continuation pattern, offering a favorable entry point.
• Low Volatility Setup: Reduced price volatility indicates consolidation, often preceding another upward move.

Why This Combination Matters

High-growth momentum investors seek stocks with accelerating earnings and revenue, while technical traders look for strong trends with well-defined entry points. AXON fits both criteria, making it a compelling candidate for investors following a CANSLIM or Minervini-style approach.

For more high-growth momentum stocks with strong technical setups, check our High Growth Momentum Breakout Setups Screen.

Disclaimer

This is not investment advice. The analysis reflects observations at the time of writing, and market conditions can change. Always conduct your own research before making investment decisions.