Axon Enterprise is Wednesday's pick for IBD 50 Growth Stocks To Watch as Axon stock broke out of a base and reached a new high Tuesday. Shares have been on the rise since the company recently reported positive quarterly results, including record-high revenue.
The IBD 50 and IBD Big Cap 20 stock is pulling back slightly Wednesday after rising 4.5% Tuesday. On Wednesday, Goldman Sachs raised its price target to 830 from 730, and held its buy rating on Axon stock.
Axon makes products and technology used by law enforcement, federal and corrections officers, the military, and emergency medical services. It is known for its Taser weapons, vehicle and body cameras and drones.
In April, the company hosted its annual user conference, where it showcased new products. It highlighted its license plate reader and Axon Assistant, a voice-activated artificial intelligence feature within its Axon Body 4 cameras.
Axon stock ranks No. 1 out of 49 stocks in the Security/Safety group, which holds the 26th spot out of the 197 industry groups that Investor's Business Daily tracks.
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Axon Stock In A Buy Zone
Axon stock broke out of an early-stage cup base with a 715.99 buy point Tuesday and is in a 5% buy zone up to 751.79, according to MarketSurge pattern recognition.
The stock also reached an all-time high on the breakout and is on pace for four straight weeks of gains. Shares have more than tripled since its cup-with-handle base breakout in October 2023.
Its relative strength line reached a 52-week high, as shown by the blue dot on its chart. Its 10-week moving average is starting to turn upward, which is a positive sign for the stock.
Axon stock's IBD Timeliness Rating of A indicates potential relative positive price performance over the next 12 months.
Its Accumulation/Distribution Rating of B shows moderate institutional buying over the last 13 weeks. Mutual funds have increased their positions for eight straight quarters, according to IBD Stock Checkup.
Three IBD Mutual Fund Index names own shares, including Fidelity Contrafund. And its 1.7 up/down volume ratio shows positive demand over the last 50 days.
Axon Produces Record Revenue
Axon topped first-quarter earnings and sales estimates on May 7. Its profit grew 23% on record quarterly revenue of $603.6 million, or a 31% increase. It has a three-year sales growth rate of 34%.
It also raised its full-year 2025 revenue guidance to a $2.6 billion-$2.7 billion range, up from its prior forecast of $2.55 billion-$2.65 billion.
Full-year 2025 profit-growth projections have recently been raised to 5%, and to 23% for 2026. This follows robust per-share earnings growth of 89% in 2023, and 43% in 2024.
Lastly, it boasts a best-possible 99 IBD Earnings Per Share Rating and a 98 Composite Rating.
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