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

Last update: Jun 5, 2024

Exploring Growth Potential: AXON ENTERPRISE INC (NASDAQ:AXON) and Its Base Formation. Growth investors seek promising revenue and EPS growth, and AXON ENTERPRISE INC has come under our scrutiny for potential growth investing. While it's crucial to do your own research, we've detected AXON ENTERPRISE INC on our screen for growth with base formation, suggesting it merits a closer look.

Analyzing Growth Metrics

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:AXON, the assigned 9 reflects its growth potential:

The Earnings Per Share has grown by an impressive 67.94% over the past year.
The Earnings Per Share has been growing by 45.65% on average over the past years. This is a very strong growth
The Revenue has grown by 31.69% in the past year. This is a very strong growth!
AXON shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 30.06% yearly.
AXON is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.88% yearly.
The Revenue is expected to grow by 22.93% on average over the next years. This is a very strong growth

Evaluating Health: NASDAQ:AXON

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:AXON, the assigned 7 for health provides valuable insights:

AXON has an Altman-Z score of 8.26. This indicates that AXON is financially healthy and has little risk of bankruptcy at the moment.
AXON's Altman-Z score of 8.26 is amongst the best of the industry. AXON outperforms 95.38% of its industry peers.
With a decent Debt to FCF ratio value of 4.19, AXON is doing good in the industry, outperforming 80.00% of the companies in the same industry.
AXON has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.37, AXON is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
A Current Ratio of 2.91 indicates that AXON has no problem at all paying its short term obligations.
AXON has a better Current ratio (2.91) than 70.77% of its industry peers.
A Quick Ratio of 2.55 indicates that AXON has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.55, AXON belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.

Profitability Analysis for NASDAQ:AXON

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:AXON has earned a 7 out of 10:

Looking at the Return On Assets, with a value of 7.25%, AXON belongs to the top of the industry, outperforming 81.54% of the companies in the same industry.
With an excellent Return On Equity value of 14.43%, AXON belongs to the best of the industry, outperforming 81.54% of the companies in the same industry.
The Profit Margin of AXON (15.60%) is better than 92.31% of its industry peers.
AXON's Profit Margin has improved in the last couple of years.
AXON's Operating Margin of 9.19% is fine compared to the rest of the industry. AXON outperforms 67.69% of its industry peers.
In the last couple of years the Operating Margin of AXON has grown nicely.
With an excellent Gross Margin value of 60.16%, AXON belongs to the best of the industry, outperforming 96.92% of the companies in the same industry.

How does the Setup look for NASDAQ:AXON

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NASDAQ:AXON this score is currently 7:

Although the technical rating is only medium, AXON does present a nice setup opportunity. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 288.21. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 276.21, a Stop Loss order could be placed below this zone.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

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

For an up to date full technical analysis you can check the technical report of AXON

Disclaimer

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.