Is NASDAQ:AXON on the Verge of a Major Breakout as a Strong Growth Stock?

Last update: Sep 11, 2024

In this article we will dive into AXON ENTERPRISE INC (NASDAQ:AXON) as a possible candidate for growth investing. Investors should always do their own research, but we noticed AXON ENTERPRISE INC showing up in our strong growth, ready to breakout screen, which makes it worth to investigate a bit more.

A Closer Look at Growth 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:

The Earnings Per Share has grown by an impressive 36.47% over the past year.
AXON shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 45.65% yearly.
The Revenue has grown by 32.59% 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.
The Earnings Per Share is expected to grow by 20.90% on average over the next years. This is a very strong growth
Based on estimates for the next years, AXON will show a very strong growth in Revenue. The Revenue will grow by 24.02% on average per year.

Health Assessment of 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:

An Altman-Z score of 10.29 indicates that AXON is not in any danger for bankruptcy at the moment.
AXON has a better Altman-Z score (10.29) than 95.38% of its industry peers.
The Debt to FCF ratio of AXON is 3.33, which is a good value as it means it would take AXON, 3.33 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.33, AXON belongs to the top of the industry, outperforming 83.08% of the companies in the same industry.
A Debt/Equity ratio of 0.35 indicates that AXON is not too dependend on debt financing.
AXON has a Current Ratio of 2.88. This indicates that AXON is financially healthy and has no problem in meeting its short term obligations.
AXON's Current ratio of 2.88 is fine compared to the rest of the industry. AXON outperforms 67.69% of its industry peers.
AXON has a Quick Ratio of 2.52. This indicates that AXON is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of AXON (2.52) is better than 81.54% of its industry peers.

Profitability Assessment of NASDAQ:AXON

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:AXON scores a 7 out of 10:

Looking at the Return On Assets, with a value of 7.77%, AXON belongs to the top of the industry, outperforming 83.08% of the companies in the same industry.
AXON has a Return On Equity of 15.07%. This is amongst the best in the industry. AXON outperforms 83.08% of its industry peers.
Looking at the Profit Margin, with a value of 16.05%, AXON belongs to the top of the industry, outperforming 93.85% of the companies in the same industry.
In the last couple of years the Profit Margin of AXON has grown nicely.
Looking at the Operating Margin, with a value of 8.17%, AXON is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
AXON's Operating Margin has improved in the last couple of years.
AXON's Gross Margin of 59.81% is amongst the best of the industry. AXON outperforms 93.85% of its industry peers.

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 extent of consolidation in the stock based on multiple short-term technical indicators. Currently, NASDAQ:AXON has a 7 as its setup rating:

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 373.70. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 354.61, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

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

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

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

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.