Is NASDAQ:AXON a Fit for high Growth Investing Strategies?

A possible breakout setup was detected on AXON ENTERPRISE INC (NASDAQ:AXON) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NASDAQ:AXON.

Deciphering the Technical Picture of NASDAQ:AXON

As part of its analysis, ChartMill provides a comprehensive Technical Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various technical indicators and properties.

We assign a technical rating of 9 out of 10 to AXON. In the last year, AXON was one of the better performers, but we do observe some doubts in the very recent evolution.

• The long term trend is positive and the short term trend is neutral. The long term trend may just continue or reversal may be around the corner!
• Looking at the yearly performance, AXON did better than 96% of all other stocks. We also observe that the gains produced by AXON over the past year are nicely spread over this period.
• AXON is part of the Aerospace & Defense industry. There are 65 other stocks in this industry. AXON outperforms 85% of them.
• AXON is currently trading in the upper part of its 52 week range. The S&P500 Index is also trading in the upper part of its 52 week range, so AXON is performing more or less in line with the market.

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

Looking at the Setup

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NASDAQ:AXON currently holds a 7 as its setup rating, suggesting a particular level of consolidation in the stock.

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 601.05, a Stop Loss order could be placed below this zone.

Some of the high growth metrics of NASDAQ:AXON highlighted

• The earnings per share (EPS) of AXON ENTERPRISE INC have shown positive growth on a quarter-to-quarter (Q2Q) basis, with a 42.16% increase. This reflects the company's ability to improve its profitability over time.
• With consistent quarter-to-quarter (Q2Q) revenue growth of 31.59%, AXON ENTERPRISE INC exemplifies its ability to generate increased sales and revenue streams. This growth signifies the company's strong business performance and its potential for continued growth.
• The 3-year EPS growth of AXON ENTERPRISE INC (32.14%) highlights the company's ability to consistently improve its earnings performance and suggests a positive outlook for future profitability.
• With impressive 1-year revenue growth of 63.57%, AXON ENTERPRISE INC showcases its ability to generate increased sales and revenue. This growth highlights the company's strong customer demand and its effective business strategies.
• AXON ENTERPRISE INC has seen a 17.57% change in the average next Quarter EPS Estimate by analysts over the last 3 months, signaling the shifting perception of the company's EPS outlook.
• The recent financial report of AXON ENTERPRISE INC demonstrates a 42.16% increase in quarterly earnings compared to the previous quarter. This growth indicates positive momentum in the company's financials and suggests a promising upward trend
• With positive growth in its free cash flow (FCF) over the past year, AXON ENTERPRISE INC showcases its ability to generate strong cash flows and maintain a solid financial position. This growth reflects the company's efficient utilization of capital and its commitment to long-term value creation.
• AXON ENTERPRISE INC has a healthy Return on Equity(ROE) of 20.59%. This demonstrates the company's efficient utilization of capital and indicates its commitment to driving profitability.
• With a Debt-to-Equity ratio at 0.32, AXON ENTERPRISE INC showcases its prudent financial management. The company's balanced approach between debt and equity reflects its commitment to maintaining a stable capital structure.
• With 81.14% of the total shares held by institutional investors, AXON ENTERPRISE INC showcases a healthy distribution of ownership. This suggests a mix of institutional and retail investors, fostering a dynamic market for the stock.
• AXON ENTERPRISE INC has consistently exceeded EPS estimates in the last 4 quarters, demonstrating its ability to outperform market expectations. This trend highlights the company's strong financial performance and its potential for future growth.
• AXON ENTERPRISE INC has exhibited strong Relative Strength(RS) in recent periods, with a current 96.11 rating. This indicates the stock's ability to outperform the broader market and reflects its competitive position. AXON ENTERPRISE INC shows promising potential for continued price momentum.

More high growth momentum breakout stocks can be found in our High Growth Momentum Breakout screen.

Keep in mind

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.