Axon Enterprise Inc
Axon Enterprise Inc
IBD Stock Analysis
- Breaks out past 130.51 buy point
- Rebounds from 10-week line
- Relative strength line back at record highs
Industry Group Ranking
* Not real-time data. All data shown was captured at
2:45PM EST on
Axon Enterprise is the IBD Stock Of The Day as the maker of Tasers, body cameras and cloud-based evidence systems keeps solving law-enforcement challenges and growing its market opportunity. AAXN stock rose into a buy zone in Wednesday’s stock-market action.
Axon stock is well into its third chapter. When it went by the Taser name, the company embarked on a huge run in 2003-04. Its leading position in police body cameras set up another advance after a 2014 fatal police shooting in Ferguson, Mo., sparked a call for transparency. Lately, Axon has thrived by building out a cloud-based platform. Axon’s solutions now go beyond managing video evidence to handling records like police reports and managing dispatch operations.
Axon’s Next Taser Will Be ‘Revolutionary’
Yet while Axon’s Taser has long dominated the market, its growth story isn’t over. At a Dec. 8 Raymond James virtual investor conference Axon CFO Jawad Ahsan said he sees Taser growing 10%-12% a year in coming years, driven by gains among international, corrections and private-security customers.
Ahsan described the Taser 7, the latest version, as “evolutionary.” But he said the next version is a “revolutionary re-imagining of what the Taser should be.”
The next Taser “could finally get people to see and believe in our mission of obsoleting the bullet,” Ahsan said.
Axon anticipates that the next Taser will have “a lot of appeal for consumers” as well as law enforcement. That’s why Axon is speeding up development. Ahsan sees its release in 2022-2023 time frame.
On Nov. 6, Axon stock rocketed 13% on a strong Q3 earnings report, breaking out of a consolidation. The advance halted at Nov. 24 with an intraday peak of 130.41. The abbreviated consolidation over the past month created a buy point at 130.51.
AAXN stock tumbled 6.9% on Dec. 16, after JMP Securities analyst Joseph Osha cut his rating to market perform. He said Axon stock appeared fairly valued at around 11 times expected 2021 revenue.
Yet AAXN stock found support at its 10-week line and immediately rebounded. Axon stock first nudged past the buy point on Tuesday, but closed just lower.
On Wednesday, AAXN stock rose 2.6% to 131.68, breaking out in its fifth straight daily advance. The 5% chase zone for AAXN stock runs through 137.04.
AAXN stock saw its relative strength line, the blue line in IBD charts that tracks its performance vs. the S&P 500, match its all-time high, a positive sign.
Axon Police Reform Opportunity
Axon said with its Nov. 5 earnings report that it’s not seeing any negative impact from “police defunding concerns” and noted some “acceleration of body camera buying decisions due to agencies wishing to provide transparency to their communities.”
“We are still seeing a lot of strength in our pipeline,” Ahsan said on Dec. 8. “Our products are built to solve the problems that many of our law enforcement agencies in this country are trying to solve.”
As Axon keeps expanding its offerings, satisfied customers keep renewing and expanding their subscriptions. Axon’s net revenue retention in Q3 was 120%.
YOU MAY ALSO LIKE:
IPO Stocks To Watch: Pool Leader Leslie’s Breaks Out Past New Buy Point
IBD 50 Stock Cerence Has ‘White Hot Momentum’ Heading Into 2021
MarketSmith: Research, Charts, Data And Coaching All In One Place
Looking For The Next Big Stock Market Winners? Start With These 3 Steps
Market Rally Takes Veto Threat In Stride; Five IBD 50 Stocks Near Buy Points
View more information: https://www.investors.com/research/ibd-stock-of-the-day/aaxn-stock-breaks-out-taser-maker-axon-stunning-plans/