NASDAQ:AXON, a strong growth stock, setting up for a breakout.

Growth investors are on the lookout for stocks displaying robust revenue and EPS growth. In this analysis, we'll assess whether AXON ENTERPRISE INC (NASDAQ:AXON) aligns with growth investing criteria, especially as it consolidates and signals a possible breakout. As always, investors should conduct their own research, but AXON ENTERPRISE INC has surfaced on our radar for growth with base formation, warranting further examination.

What does the Growth looks like for NASDAQ:AXON

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:AXON was assigned a score of 9 for growth:

• 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!
• The Revenue has been growing by 30.06% on average over the past years. This is a very strong growth!
• The Earnings Per Share is expected to grow by 17.88% on average over the next years. This is quite good.
• Based on estimates for the next years, AXON will show a very strong growth in Revenue. The Revenue will grow by 22.93% on average per year.

How We Gauge Health for NASDAQ:AXON

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:AXON scores a 7 out of 10:

• An Altman-Z score of 9.19 indicates that AXON is not in any danger for bankruptcy at the moment.
• AXON's Altman-Z score of 9.19 is amongst the best of the industry. AXON outperforms 95.45% of its industry peers.
• AXON has a better Debt to FCF ratio (4.19) than 80.30% of its industry peers.
• AXON has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
• The Debt to Equity ratio of AXON (0.37) is better than 60.61% of its industry peers.
• AXON has a Current Ratio of 2.91. This indicates that AXON is financially healthy and has no problem in meeting its short term obligations.
• AXON has a Current ratio of 2.91. This is in the better half of the industry: AXON outperforms 69.70% of its industry peers.
• A Quick Ratio of 2.55 indicates that AXON has no problem at all paying its short term obligations.
• AXON has a better Quick ratio (2.55) than 87.88% of its industry peers.

What does the Profitability looks like 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:

• With an excellent Return On Assets value of 7.25%, AXON belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
• AXON's Return On Equity of 14.43% is amongst the best of the industry. AXON outperforms 80.30% of its industry peers.
• AXON has a better Profit Margin (15.60%) than 92.42% of its industry peers.
• In the last couple of years the Profit Margin of AXON has grown nicely.
• The Operating Margin of AXON (9.19%) is better than 66.67% of its industry peers.
• AXON's Operating Margin has improved in the last couple of years.
• AXON has a better Gross Margin (60.16%) than 95.45% of its industry peers.

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:

Besides having an excellent technical rating, AXON also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 318.56. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 297.40, 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.

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

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

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.