Exploring the Growth Potential of NASDAQ:AXON as It Nears a Breakout.

For growth-minded investors, high revenue and EPS growth are key criteria. Today, we'll examine whether AXON ENTERPRISE INC (NASDAQ:AXON) fits the bill for growth investing, particularly as it forms a base and hints at a potential breakout. Remember, due diligence is essential, but AXON ENTERPRISE INC has caught our attention on our screen for growth with base formation. It may warrant additional investigation.

What does the Growth looks like for NASDAQ:AXON

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:AXON boasts a 9 out of 10:

• AXON shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 88.58%, which is quite impressive.
• The Earnings Per Share has been growing by 45.65% on average over the past years. This is a very strong growth
• Looking at the last year, AXON shows a very strong growth in Revenue. The Revenue has grown by 31.38%.
• Measured over the past years, AXON shows a very strong growth in Revenue. The Revenue has been growing by 30.06% on average per year.
• AXON is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.67% yearly.
• AXON is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 21.38% yearly.

A Closer Look at Health for NASDAQ:AXON

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:AXON was assigned a score of 7 for health:

• An Altman-Z score of 8.84 indicates that AXON is not in any danger for bankruptcy at the moment.
• AXON has a better Altman-Z score (8.84) than 95.31% of its industry peers.
• AXON has a better Debt to FCF ratio (5.25) than 75.00% of its industry peers.
• A Debt/Equity ratio of 0.42 indicates that AXON is not too dependend on debt financing.
• A Current Ratio of 3.00 indicates that AXON has no problem at all paying its short term obligations.
• AXON's Current ratio of 3.00 is fine compared to the rest of the industry. AXON outperforms 76.56% of its industry peers.
• A Quick Ratio of 2.66 indicates that AXON has no problem at all paying its short term obligations.
• AXON has a Quick ratio of 2.66. This is amongst the best in the industry. AXON outperforms 85.94% of its industry peers.

Profitability Assessment of NASDAQ:AXON

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:AXON was assigned a score of 6 for profitability:

• AXON's Return On Assets of 5.07% is fine compared to the rest of the industry. AXON outperforms 68.75% of its industry peers.
• With a decent Return On Equity value of 10.80%, AXON is doing good in the industry, outperforming 73.44% of the companies in the same industry.
• AXON's Profit Margin of 11.14% is amongst the best of the industry. AXON outperforms 82.81% of its industry peers.
• In the last couple of years the Profit Margin of AXON has grown nicely.
• With a decent Operating Margin value of 9.90%, AXON is doing good in the industry, outperforming 71.88% of the companies in the same industry.
• In the last couple of years the Operating Margin of AXON has grown nicely.
• Looking at the Gross Margin, with a value of 61.11%, AXON belongs to the top of the industry, outperforming 95.31% of the companies in the same industry.

Why is NASDAQ:AXON a setup?

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, NASDAQ:AXON has a 7 as its setup rating, indicating its current consolidation status.

AXON has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a support zone below the current price at 293.69, a Stop Loss order could be placed below this zone.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

Our latest full fundamental report of AXON contains the most current fundamental analsysis.

Check the latest full technical report of AXON for a complete technical analysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.