Latest news with #AXON
Yahoo
9 hours ago
- Business
- Yahoo
Jim Cramer Notes Axon (AXON) is a 'New High Natural'
We recently published a list of . In this article, we are going to take a look at where Axon Enterprise, Inc. (NASDAQ:AXON) stands against other stocks that Jim Cramer discusses. While discussing Axon Enterprise, Inc. (NASDAQ:AXON), Cramer said that it has a 'great software business.' 'Now, each day has its own Mosaic. We have Axon tonight, the law enforcement technology company that has so much business, they can barely handle it. It's a new high natural. By the way, they have great software business growing at more than 30%.' Axon (NASDAQ:AXON) produces TASER-branded conducted energy devices and provides a range of hardware, cloud software, and mobile tools that support public safety operations, evidence management, and real-time data integration across various industries. In a February episode of Mad Money, Cramer remarked: 'Now, biggest losers, one of them that has just been quietly going up over time, it's called Axon Enterprise. It was formerly TASER, which plunged nearly 28% over the course of three days. Now, Axon has been a fabulous winner for years. It pivoted… to police body cameras, evidence management software Those were good businesses. So why then did the stock just get completely obliterated? Weirdly, there really wasn't any bad news from the company. Instead, it was a one-two punch of downgrades from analysts at boutique research firms that failed Axon. A technician in a white coat testing an in-car system on a modern military vehicle. The stock fell another 5% on Friday when the market wide selling really got going. Now Axon reports tomorrow after the close, but clearly people wanted to ring the register going into the quarter and the bearish analysts gave them a real excuse to do so. Very different attitude from what we've seen in the past few months, huh, where momentum stocks are frankly unstoppable.' Overall, AXON ranks 15th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of AXON as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Axon Enterprise's Expenses are on the Rise: Will It Affect Margins?
Axon Enterprise, Inc. AXON has been grappling with rising costs and expenses over time. AXON reported an uptick in costs and expenses during the first quarter of 2025. The company's cost of sales rose 18.2% year over year in the first quarter. The metric surged 39% year over year in 2024. AXON's selling, general and administrative (SG&A) expenses also increased 48% year over year in the first quarter. The same rose 49.8% year over year in 2024. Key factors behind the company's high costs and SG&A expenses included business integration activities, increased headcount, higher wages and stock-based compensation the rising costs, in the first quarter, AXON's adjusted gross margin increased 40 basis points to 63.6%. Also, its adjusted EBITDA margin increased to 25.7% from 23.7% in the year-ago period. The improvement in margins was driven by higher revenues generated from robust sales for TASER 10, Axon Body 4 and platform sensor products. The company reported revenues of $603.6 million in the quarter, which increased 31.3% year over year. Axon Enterprise's focus on effective cost management and revenue improvement is likely to expand its margin performance. For 2025, AXON expects adjusted EBITDA in the range of $650-$675 million, implying an adjusted EBITDA margin of approximately 25%.It's worth noting that, effective first-quarter 2025, Axon Enterprise realigned its business segments. This realignment is expected to enhance the company's visibility into segment-specific performance and enable it to effectively manage its costs. This strategic move will likely support Axon Enterprise's ongoing margin improvement and operational efficiency. Among its major peers, Kratos Defense & Security Solutions, Inc. KTOS is facing cost pressure. Its cost of sales increased 11.1% in the first quarter of 2025. Kratos' SG&A expenses rose 4.8%, year over year in the same period. Kratos' gross margin declined 30 basis points to 24.3% in the first escalating costs and expenses are also a concern for Teledyne Technologies Incorporated TDY. Teledyne's cost of sales rose 7.8% year over year in the first quarter of 2025. The company's SG&A expenses also increased 6.5% year over year. Teledyne's gross margin declined 320 basis points to 42.7% in the same period. Shares of Axon Enterprise have surged 181.1% in the past year compared with the industry's growth of 20.8%. Image Source: Zacks Investment Research From a valuation standpoint, AXON is trading at a forward price-to-earnings ratio of 1,195.30X above the industry's average of 45.34X. Axon carries a Value Score of F. Image Source: Zacks Investment Research The Zacks Consensus Estimate for AXON's 2025 earnings has been on the rise over the past 60 days. Image Source: Zacks Investment Research The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Teledyne Technologies Incorporated (TDY) : Free Stock Analysis Report Kratos Defense & Security Solutions, Inc. (KTOS) : Free Stock Analysis Report Axon Enterprise, Inc (AXON) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
3 Cash-Heavy Stocks with Competitive Advantages
Companies with more cash than debt often have stronger financial flexibility, making them attractive in uncertain markets. Without interest payments being less of a worry, these businesses can invest more in growth, innovation, or buybacks and dividends. Finding the best investments isn't always easy, and that's why we started StockStory. That said, here are three companies with net cash positions that can continue growing sustainably. Net Cash Position: $248 million (16.6% of Market Cap) Started by Oleg Shchegolev while still in university, Semrush (NYSE:SEMR) is a software-as-a-service platform that helps companies optimize their search engine and content marketing efforts. Why Does SEMR Stand Out? Winning new contracts that can potentially increase in value as its billings growth has averaged 24.8% over the last year Forecasted revenue growth of 18.7% for the next 12 months indicates its momentum over the last three years is sustainable Software is difficult to replicate at scale and results in a premier gross margin of 82.1% Semrush is trading at $10.11 per share, or 3.2x forward price-to-sales. Is now the right time to buy? See for yourself in our comprehensive research report, it's free. Net Cash Position: $360.3 million (0.6% of Market Cap) Providing body cameras and tasers for first responders, AXON (NASDAQ:AXON) develops technology solutions and weapons products for military, law enforcement, and civilians. Why Are We Backing AXON? Unit sales averaged 32% growth over the past two years and imply healthy demand for its products Free cash flow margin jumped by 20.3 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends Historical investments are beginning to pay off as its returns on capital are growing At $790.48 per share, Axon trades at 132.5x forward P/E. Is now the time to initiate a position? Find out in our full research report, it's free. Net Cash Position: $92.94 million (0.3% of Market Cap) Founded in 1989 to address the then-underdiagnosed condition of sleep apnea, ResMed (NYSE:RMD) develops cloud-connected medical devices and software solutions that treat sleep apnea, COPD, and other respiratory disorders for home and clinical use. Why Are We Fans of RMD? Constant currency growth averaged 12% over the past two years, showing it can expand globally regardless of the macroeconomic environment Performance over the past five years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 15.7% outpaced its revenue gains Free cash flow margin expanded by 7.1 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends ResMed's stock price of $249.69 implies a valuation ratio of 24.6x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
New to Investing? This 1 Aerospace Stock Could Be the Perfect Starting Point
Kickstarting your investment journey can be both exciting and scary at the same time, and if you're new to investing, you may not know where to even begin. However, one thing is for certain -- stocks set to beat the market over the next 12 months serve as the perfect foundation for any kind of investor. Let's now take a look at one standout stock that could be a perfect fit for your portfolio. Headquartered in Scottsdale, AZ, Axon. develops and manufactures weapons for selling to U.S. state and local governments, the U.S. federal government, international government customers and commercial enterprises. Focused on global public safety, Axon's suite of products includes conducted energy devices, body-worn cameras, in-car cameras, cloud-hosted digital evidence management solutions, productivity software and real-time operations capabilities. The company generates the majority of its revenues through direct sales, including its online store. Axon faces strong competition in both its hardware and software markets from companies like Motorola Solutions, Panasonic, IBM and others. On a geographical basis, the company has operations in the United States (85% of 2024 net sales) and other international markets (15%). AXON was added to the Zacks Focus List on June 3, 2020 at $97.85 per share. Since then, shares have increased 675.24% to $758.57. Two analysts revised their earnings estimate higher in the last 60 days for fiscal 2025, while the Zacks Consensus Estimate has increased $0.06 to $6.15. AXON also boasts an average earnings surprise of 19.8%. Earnings for Axon Enterprise are forecasted to see growth of 3.5% for the current fiscal year as well. Since stock prices respond to earnings estimate revisions, it can be very profitable to buy stocks with an increased earnings outlook. By buying a Focus List stock like AXON, then, you're likely getting into a company whose future earnings estimates will be raised, potentially leading to price momentum. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Axon Enterprise, Inc (AXON) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
27-05-2025
- Business
- CNBC
This law enforcement stock is forming a 'bull flag' pattern that signals more gains ahead, charts show
When looking at the future of law enforcement envisioned by Axon Enterprise CEO Rick Smith, I can't help but think of the 1993 Sylvester Stallone movie "Demolition Man." In that movie, they portray a more civilized society where police utilize non-lethal AI-like systems and surveillance-driven technologies to maintain order. The movie portrays violent, lethal manners of containment as a crude relic of the past. Granted ,many personal freedoms are encroached in that movie and that's where the comparison ends. But AXON is designing a more balanced, ethical and technology-driven approach to law enforcement. We own AXON in our Tactical Alpha Growth and Active Opps portfolio at Inside Edge Capital and will be looking to increase our size in AXON. The company, formerly Taser International, has offerings in non-lethal weaponry, vehicle surveillance, systems to improve police force productivity, decision support and real-time operations utilizing artificial intelligence — as well as drone technology that act as first responders. To make one more fundamental case of how AXON can improve productivity, the company claims police officers spend 40% of their time on paperwork. Axon has solutions to utilize AI so officers can spend more time in the field and less time behind a desk. AXON recently broke out on the weekly chart from the $700-$720 resistance zone that should now be considered support. Provided the stock does not break back below $690, I see a potential move towards the upper end of the dashed parallel channel into the $900's. Looking at the annual revenue and EPS figures below the chart, revenues have been growing steadily, but you'll see a "shocking" (bad joke, I know) 2025 EPS drop of 75.21%. Those 2025 projected EPS numbers of $1.19 are GAAP earnings. The expected non-GAAP earnings for all of 2025 are $6.11 compared to $5.94 for 2024. Looking ahead to 2026, expected non-GAAP earnings are 7.50 for a 22.7% growth rate. As shown on the chart, 2026 GAAP earnings are expected to grow by 116.39% to $2.58 in EPS. The discrepancy between GAAP and non-GAAP comes from the company CEO Smith's policy of aggressive long-term compensation plan tied to performance goals. The company issues aggressive equity-based incentives to employees to attempt to hit those goals. Another reason for the discrepancy, according to company reports, is — when Axon acquires another company, intangible assets like software or patents are amortized in GAAP but are excluded from non-GAAP. Moving down to the daily chart we see AXON has carved out a "bull flag" consolidation pattern above the newly formed support zone and today we are extending higher. The 50-day average volume for AXON is 609,000 shares, so to help confirm the breakout I would like to see a few days on which volume exceeds 700,000 shares. In our Active Opps portfolio we hold a 4.02% allocation. After publishing this article I'm looking to increase the holding to approximately 5%-6% of the portfolio. In our slightly less aggressive but still growth-oriented model Tactical Alpha Growth, we hold a 1% allocation established on Aug. 28 that we're also looking to increase. If you look back to that time frame, you'll see a similar bull flag technical pattern (red arrow) that set up the breakout into the $400's. AXON is not trying to create a utopian overreach society like Demolition Man, but I think it is trying to take the best parts of non-lethal policing, officer accountability and efficiency, deterrent systems, all utilizing AI technologies. This name likely remains in our portfolios for the foreseeable future. -Todd Gordon, Founder of Inside Edge Capital, LLC We offer active portfolio management and regular subscriber updates like the idea presented above. DISCLOSURES: Gordon owns AXON personally and in his wealth management company Inside Edge Capital. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
