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

AXON ENTERPRISE INC (NASDAQ:AXON) was identified by our screener as a strong growth stock with a favorable technical setup. The company combines solid fundamental growth metrics with a promising chart pattern, making it worth a closer look.

Fundamental Strengths

AXON’s growth profile stands out, with key highlights from its fundamental report including:

• Revenue Growth: Revenue surged 59.79% over the past year, with a 5-year average growth of 31.44%.
• Earnings Expansion: EPS grew 39.55% in the last year and 41.41% annually over the past five years.
• Profitability: The company maintains a strong Profit Margin (17.31%), outperforming 97% of its Aerospace & Defense industry peers.
• Financial Health: A solid Current Ratio (2.83) and Quick Ratio (2.62) indicate good liquidity.

While AXON’s valuation appears high with a P/E of 121.48, this is partly justified by its strong growth trajectory and industry-leading margins.

Technical Setup

The technical analysis report highlights:

• Strong Momentum: AXON has outperformed 96% of all stocks over the past year.
• Consolidation Phase: The stock has been trading in a range between $723 and $830, with recent price action near the lower end, suggesting a potential breakout opportunity.
• Support Levels: Key support zones exist at $729.61 and $584.89, providing clear risk management points.
• Setup Rating: The stock scores an 8/10 on technical setup quality, indicating a favorable risk-reward scenario.

Why This Combination Matters

Growth stocks with strong technical setups often present attractive entry points. AXON’s fundamentals suggest continued expansion, while the chart shows a potential breakout after recent consolidation. Investors looking for high-growth opportunities may find this combination compelling.

For more stocks with similar characteristics, check our Strong Growth Stocks with Good Technical Setup Ratings screener.

Disclaimer

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