Why NASDAQ:AXON Is a Standout High-Growth Stock in a Consolidation Phase.

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.

Deciphering NASDAQ:AXON's Growth Rating

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:AXON has earned a 9 for growth:

• The Earnings Per Share has grown by an impressive 32.61% 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
• AXON shows a strong growth in Revenue. In the last year, the Revenue has grown by 63.57%.
• 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.
• The Earnings Per Share is expected to grow by 24.00% 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 25.59% on average per year.

How do we evaluate the Health for NASDAQ:AXON?

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:AXON, the assigned 8 reflects its health status:

• AXON has an Altman-Z score of 16.91. This indicates that AXON is financially healthy and has little risk of bankruptcy at the moment.
• The Altman-Z score of AXON (16.91) is better than 95.38% of its industry peers.
• The Debt to FCF ratio of AXON is 3.09, which is a good value as it means it would take AXON, 3.09 years of fcf income to pay off all of its debts.
• The Debt to FCF ratio of AXON (3.09) is better than 83.08% of its industry peers.
• AXON has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
• The Debt to Equity ratio of AXON (0.32) is better than 64.62% of its industry peers.
• AXON has a Current Ratio of 2.96. This indicates that AXON is financially healthy and has no problem in meeting its short term obligations.
• With a decent Current ratio value of 2.96, AXON is doing good in the industry, outperforming 67.69% of the companies in the same industry.
• A Quick Ratio of 2.63 indicates that AXON has no problem at all paying its short term obligations.
• The Quick ratio of AXON (2.63) is better than 87.69% of its industry peers.

Profitability Examination for NASDAQ:AXON

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:AXON has achieved a 7:

• With an excellent Return On Assets value of 10.79%, AXON belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
• With an excellent Return On Equity value of 20.59%, AXON belongs to the best of the industry, outperforming 90.77% of the companies in the same industry.
• AXON's Profit Margin of 18.01% is amongst the best of the industry. AXON outperforms 93.85% of its industry peers.
• AXON's Profit Margin has improved in the last couple of years.
• In the last couple of years the Operating Margin of AXON has grown nicely.
• AXON's Gross Margin of 59.14% is amongst the best of the industry. AXON outperforms 92.31% 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 8 as its setup rating:

AXON has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. A pullback is taking place, which may present a nice opportunity for an entry. There is very little resistance above the current price. There is a support zone below the current price at 644.90, a Stop Loss order could be placed below this zone.

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

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

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.