In the latest market close, Axon Enterprise (AXON) reached $610.32, with a -0.5% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.29%. On the other hand, the Dow registered a loss of 0.32%, and the technology-centric Nasdaq decreased by 0.5%.

Shares of the maker of stun guns and body cameras have depreciated by 1.67% over the course of the past month, underperforming the Aerospace sector's gain of 5.01% and the S&P 500's gain of 2.52%.

The investment community will be closely monitoring the performance of Axon Enterprise in its forthcoming earnings report. The company is predicted to post an EPS of $1.51, indicating a 34.82% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $567.56 million, showing a 31.34% escalation compared to the year-ago quarter.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Axon Enterprise. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, Axon Enterprise holds a Zacks Rank of #2 (Buy).

From a valuation perspective, Axon Enterprise is currently exchanging hands at a Forward P/E ratio of 94.43. Its industry sports an average Forward P/E of 30.92, so one might conclude that Axon Enterprise is trading at a premium comparatively.

Also, we should mention that AXON has a PEG ratio of 3.17. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Aerospace - Defense Equipment stocks are, on average, holding a PEG ratio of 2.58 based on yesterday's closing prices.

The Aerospace - Defense Equipment industry is part of the Aerospace sector. At present, this industry carries a Zacks Industry Rank of 59, placing it within the top 24% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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