AXON Enterprise Inc (NASDAQ:AXON) – A Strong CAN SLIM Candidate

AXON Enterprise Inc (NASDAQ:AXON) is a company that fits well within the CAN SLIM investment strategy, a system developed by William O’Neil to identify high-growth stocks with strong momentum. The approach combines fundamental and technical analysis to find stocks with accelerating earnings, institutional support, and leadership in their industry.

Why AXON Meets the CAN SLIM Criteria

C – Current Earnings and Sales Growth

AXON shows impressive quarterly earnings growth, with EPS increasing 85.7% year-over-year in the latest quarter. Revenue growth is also strong at 33.1%, well above the CAN SLIM minimum threshold of 25%. This acceleration suggests the company is gaining momentum.

A – Annual Earnings Growth

The company has delivered consistent growth, with a 3-year EPS CAGR of 36.3%, far exceeding the 25% benchmark. This demonstrates sustained profitability and expansion.

N – New Products and Market Leadership

AXON operates in the public safety technology sector, providing advanced solutions like body cameras, cloud-based evidence management, and TASER devices. Its innovative approach positions it as a leader in a growing industry.

S – Supply and Demand

With a Debt/Equity ratio of 0.29, AXON maintains a healthy balance sheet. The stock also trades with strong liquidity, ensuring institutional interest.

L – Market Leadership

AXON ranks in the top 5% of stocks based on relative strength (CRS: 95.98), indicating it outperforms nearly all peers. This aligns with CAN SLIM’s focus on market-leading stocks.

I – Institutional Sponsorship

Institutional ownership stands at 82.9%, showing strong backing from professional investors. While not excessively high, this suggests continued institutional interest.

M – Market Direction

The broader market’s long-term trend is negative, but AXON’s technicals remain strong, with both short and long-term trends positive.

Technical and Fundamental Overview

Technical Analysis

AXON has an 8/10 technical rating, supported by a strong uptrend and outperformance against the market. Key resistance is near $613, while support levels are well-defined. However, recent volume declines suggest caution. (Full TA Report)

Fundamental Analysis

The company earns a 6/10 fundamental rating, with high growth metrics offset by a premium valuation (P/E: 104.3). Profitability is solid (ROE: 21.9%), but investors should monitor valuation concerns. (Full FA Report)

Conclusion

AXON Enterprise Inc (NASDAQ:AXON) aligns well with the CAN SLIM strategy due to its strong earnings growth, market leadership, and institutional support. While valuation remains high, its momentum and industry position make it a compelling candidate for growth-focused investors.

For more CAN SLIM-compliant stocks, check out our predefined screener.