Axon’s Shares Energized by Big Sales Jump

AXON provides equipment, training, and related services to law enforcement agencies. Some of its more popular offerings include TASER devices, body cameras, and virtual reality training. The company’s number of users and average revenue per user have increased primarily on the back of larger adoption of its software, and acquisitions are pushing it to new lines of business, like drones.

In the second quarter, revenues from TASER and the firm’s software/sensors segments increased 27.6% and 46.8%, respectively, on a year-over-year basis. AXON also provided bullish guidance for fiscal 2024, with revenues expected to be up to $2.1 billion, representing growth of approximately 29.5% on a year-over-year basis.

It’s no wonder AXON shares are up 45% this year – and they could rise more. MAPsignals data shows how Big Money investors are betting heavily on the forward picture of the stock.

Axon Shares in Demand

Institutional volumes reveal plenty. Recently, AXON has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in AXON shares. They reflect our proprietary inflow signal, pushing the stock higher:

Plenty of industrials names are under accumulation right now. But there’s a powerful fundamental story happening with Axon.

Axon Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, AXON has had strong sales growth:

• 1-year sales growth rate (+31.4%)
• 3-year sales growth rate (+32%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +22.7%.

Now it makes sense why the stock has been powering to new heights. AXON has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

Axon has been a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report multiple times in the last three years. The blue bars below show when AXON was a top pick…rising with time:

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

Axon Price Prediction

The AXON rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in AXON at the time of publication.

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