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

AXON ENTERPRISE INC (NASDAQ:AXON) emerged from our CANSLIM stock screener as a potential candidate for growth-focused investors. The company, known for its public safety technology and TASER devices, meets several key criteria of the CANSLIM strategy, combining strong fundamentals with positive technical momentum.

Why AXON Fits the CANSLIM Strategy

• C – Current Earnings & Sales Growth:
  AXON reported a 22.6% year-over-year increase in EPS for the latest quarter, surpassing the CANSLIM minimum threshold of 20%. Revenue growth was also strong at 31%, well above the 25% benchmark.

• A – Annual Earnings Growth:
  The company’s three-year EPS growth stands at 36.3%, comfortably exceeding the 25% requirement. This indicates sustained profitability and expansion.

• N – New Products & Market Leadership:
  AXON operates in the evolving public safety sector, offering integrated hardware and cloud-based solutions. Its innovative approach aligns with CANSLIM’s preference for companies driving industry change.

• S – Supply & Demand:
  With a debt-to-equity ratio of 0.68, AXON maintains a manageable level of debt, supporting financial flexibility. Institutional ownership is at 82%, within the recommended range (below 85%).

• L – Market Leadership:
  The stock’s relative strength score of 97 places it in the top tier of market performers, a key trait for CANSLIM selections.

• I – Institutional Sponsorship:
  While institutional ownership is high, it remains below the 85% threshold, suggesting room for further institutional interest.

• M – Market Direction:
  Both short-term and long-term trends for the S&P 500 are positive, supporting a favorable environment for growth stocks like AXON.

Technical & Fundamental Highlights

• Technical Strength:
  AXON’s technical rating is a perfect 10, reflecting strong upward momentum across multiple time frames. The stock is trading near its 52-week high, with consistent support levels below. A recent pocket pivot signal suggests accumulation by larger investors.

• Fundamental Outlook:
  While valuation metrics appear stretched (P/E of 129.6), AXON’s growth profile justifies premium pricing for some investors. Return on equity (18.2%) and profit margins (17.3%) are industry-leading, reinforcing its financial health.

For a deeper dive, review the full fundamental analysis and technical report.

Our CANSLIM High Growth screener lists additional stocks matching this strategy and is updated daily.

Disclaimer

This is not investment advice. The observations here are based on data available at the time of writing. Always conduct your own research before making investment decisions.