Company Overview - Axon's mission is to protect life by building the technology ecosystem for public safety[7] - The company estimates a total addressable market of $129 billion[9, 69] - Axon aims to cut gun-related deaths between police and the public by 50% by 2033[10] Financial Performance - Axon achieved $2.1 billion in annual revenue in 2024[32] - The company's annual recurring revenue reached $1.1 billion[34, 127] - Future contracted bookings totaled $9.9 billion as of Q1 2025[34, 125] - The annual Adjusted EBITDA margin was 25% in 2024[34] - Net revenue retention was 123% in 2024[34, 126] Growth Strategy - Axon is expanding its reach globally and connecting with customers across the world[79] - The company is upgrading antiquated technologies and optimizing products to help prioritize existing resources[81] - Axon is innovating and improving existing products, with public safety adoption typically gradual and durable[72]

Core Insights - Axon Enterprise (AXON) is expected to report quarterly earnings of $1.27 per share, a 10.4% increase year-over-year, with revenues projected at $589.09 million, reflecting a 27.9% year-over-year growth [1] Earnings Estimates - The consensus EPS estimate has been revised 9.1% higher in the last 30 days, indicating a collective reevaluation by analysts [2] - Revisions to earnings projections are crucial for predicting investor behavior and are linked to short-term stock price performance [3] Revenue Forecasts - Analysts predict 'Net Sales- Software and Sensors' will reach $371.61 million, a 31.8% increase from the previous year [5] - 'Revenue- TASER' is expected to be $218.76 million, indicating a 22.4% year-over-year change [5] - 'Net Sales- Services- Software and Sensors' is forecasted at $248.29 million, reflecting a 40.7% increase year-over-year [5] Product Sales Estimates - 'Net Sales- Products- Software and Sensors' is projected to be $123.31 million, a 16.9% increase year-over-year [6] - 'Net Sales- Products- TASER' is expected to reach $200.30 million, indicating a 20.3% year-over-year change [6] - 'Net Sales- Services- TASER' is forecasted at $15.35 million, reflecting a 25.6% increase from the previous year [6] Additional Sales Insights - The consensus estimate for 'Net Sales- Products' stands at $323.84 million, a 19% increase year-over-year [7] - 'Net Sales- Services' is expected to be $264.40 million, indicating a 40.1% year-over-year change [7] - 'Net Sales- Products- TASER- Other' is projected to reach $12.14 million, reflecting a significant 288.2% increase year-over-year [8] Annual Recurring Revenue - Analysts estimate 'Annual recurring revenue' to be $1,051.50 million, compared to $825 million from the previous year [8] Stock Performance - Over the past month, Axon shares have recorded a return of +15.1%, outperforming the Zacks S&P 500 composite, which changed by -0.5% [9]

Company Performance - Axon Enterprise (AXON) closed at $621.10, with a daily gain of +1.27%, outperforming the S&P 500's gain of 0.63% [1] - Over the past month, Axon shares increased by 9.83%, significantly surpassing the Aerospace sector's gain of 2.14% and the S&P 500's loss of 0.7% [1] Upcoming Earnings - The upcoming earnings report for Axon Enterprise is scheduled for May 7, 2025, with an expected EPS of $1.27, indicating a 10.43% increase year-over-year [2] - Revenue is projected at $589.09 million, reflecting a 27.86% rise compared to the same quarter last year [2] Fiscal Year Projections - For the entire fiscal year, earnings are estimated at $6.11 per share and revenue at $2.62 billion, representing increases of +2.86% and +25.7% respectively from the prior year [3] - Recent revisions to analyst forecasts are crucial as they indicate changing business trends, with positive revisions suggesting analyst optimism about the company's profitability [3] Zacks Rank and Stock Performance - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), indicates that Axon Enterprise currently holds a Zacks Rank of 2 (Buy) [5] - Over the past month, the Zacks Consensus EPS estimate for Axon has increased by 4.52% [5] Valuation Metrics - Axon Enterprise has a Forward P/E ratio of 100.34, which is significantly higher than the industry average of 30.91, suggesting that the company is trading at a premium [6] - The PEG ratio for Axon is 3.61, compared to the industry average PEG ratio of 2.36, indicating a higher valuation relative to projected earnings growth [7] Industry Context - The Aerospace - Defense Equipment industry, part of the Aerospace sector, has a Zacks Industry Rank of 34, placing it in the top 14% of over 250 industries [7] - The Zacks Industry Rank measures the strength of industry groups, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [8]

Core Insights - The recent passing of a continuing resolution (CR) by Congress highlights evolving priorities and potential investment opportunities, particularly in defense spending [1][2] Defense Industry - Defense spending is a key area of focus, with an additional $9 billion secured for the Department of Defense (DoD) through the latest CR, emphasizing modernization and new technologies [2] - Lockheed Martin is identified as a leading defense stock, currently priced at $476.44, with a 12-month price forecast of $544.79, indicating a 14.35% upside potential [4] - Northrop Grumman, with a current price of $480.81, has a 12-month price forecast of $545.31, reflecting a 13.42% upside, supported by a record backlog exceeding $94 billion [8][9] - Axon Enterprise, a provider of technology solutions for law enforcement, has a current price of $596.91 and a 12-month price forecast of $626.45, showing a 4.95% upside [10] Company Performance - Lockheed Martin's stock is down over 15% from its October 2024 highs despite a record revenue year in 2024 and solid momentum in 2025 [4][5] - Northrop Grumman's revenue topped $41 billion in 2024, and the company was awarded over $50 billion in new contracts, contributing to long-term stability [8][9] - Axon Enterprise has seen a significant price increase of over 95% in the last 12 months, indicating strong growth potential despite being considered pricey by traditional valuation measures [11]

Group 1: Dutch Bros - Dutch Bros has experienced a drop in stock price recently but is still up 18% year-to-date, outperforming the market [2] - The company operates a chain of coffee shops with a unique brand and low prices, primarily focusing on drive-thru locations while expanding to meet demand [3][4] - Dutch Bros aims to grow from 1,000 stores to 7,000, indicating significant expansion potential compared to competitors like Starbucks [4] - Revenue for the fourth quarter of 2024 increased by 35% year-over-year to $343 million, with same-store sales up 6.9% and net income turning positive at $6.4 million [5] - The stock trades at a forward P/E ratio of 74, reflecting high market expectations for future growth [6] Group 2: Axon Enterprise - Axon Enterprise is a leader in law enforcement technology, providing products like Tasers and body cameras, and has shown consistent growth over the past decade [7][9] - The company is innovating with AI tools, such as Draft One, which assists law enforcement in writing reports, indicating strong demand for its technology [8] - Axon has expanded its customer base beyond law enforcement, securing contracts with private sector companies, which diversifies its revenue streams [10] - The company has maintained revenue growth of 20% or more annually for the last 10 years and is well-positioned to navigate economic challenges [9][11] Group 3: MercadoLibre - MercadoLibre is the leading e-commerce company in Latin America, with a significant opportunity for growth as 35% of adults in the region lack bank accounts [12] - The company has achieved a remarkable 1,400% return over the last decade and continues to grow revenue at high double-digit rates, with a 37% increase in the fourth quarter [13] - MercadoLibre serves 67 million unique active buyers and is expanding its financial services, contributing to a total revenue of $21 billion in 2024 [14] - The company is investing in growth opportunities, such as credit card issuance and new fulfillment centers, which may pressure near-term margins but promise long-term benefits [15] - Currently, MercadoLibre trades at a price-to-sales multiple of 5.3, suggesting potential for excellent returns as it expands in a region with 650 million people [16]

Group 1: Market Overview - The S&P 500 index experienced a decline of over 10% following the announcement of tariff rules by President Donald Trump, which raised concerns about the U.S. economy [1] - A tariff pause was implemented after nearly a week of market pressure, leading to a partial recovery in the stock market [2] Group 2: Intuitive Surgical - Intuitive Surgical's da Vinci surgical systems are widely used in surgeries, with over 11,040 systems installed globally by the end of 2024, and a 49% increase in hospitals with at least seven systems last year [5][6] - The company reported a 17% year-over-year growth in da Vinci procedures in Q1, contributing to a total revenue growth of 19% during the same period [7] - Intuitive Surgical's stock is currently trading at 63.7 times trailing-12-month earnings, indicating high expectations baked into its valuation [9] Group 3: Axon Enterprise - Axon Enterprise generates revenue from selling cameras and tasers to law enforcement, supplemented by software subscriptions for file management, resulting in a reliable revenue stream [10] - The company reported a 33% growth in total revenue last year and has a total addressable market over 50 times larger than its annual sales [12] - Axon's stock is trading at 122 times trailing earnings, reflecting a high valuation that may deter some investors [12][13]

Core Insights - LVT has integrated its security solutions with Axon Fusus, enhancing situational awareness for security operators and law enforcement, which allows for a more timely response to security incidents [1][3] Company Overview - LVT (LiveView Technologies, Inc.) is a leader in life safety and security, specializing in mobile, solar-powered, and cellular/satellite-connected surveillance solutions and software [2] - The company is headquartered in American Fork, Utah, and its enterprise software-as-a-service (SaaS) solution is utilized across various sectors including retail, critical infrastructure, utilities, and law enforcement [2] Integration Benefits - The integration with Axon Fusus is live and requires no additional hardware, providing significant benefits such as expedited emergency response times and enhanced communication for first responders [2][3] - First responders can access LVT Unit cameras through Axon Fusus, enabling live video streaming, camera control, and improved situational awareness [3] Industry Impact - The integration is seen as a critical advancement for real-time intelligence sharing between law enforcement and retail, enhancing the ability to respond to threats effectively [3] - Connected public-private collaborations are emphasized as essential for community safety, especially as safety threats become more sophisticated [3]

Core Insights - Axon is expanding its public safety ecosystem through new products and partnerships, emphasizing the importance of community collaboration in enhancing public safety [1][2] - The company aims to integrate advanced technologies such as AI, drones, and robotics to create a safer and smarter future for communities [1] Product Announcements - Introduction of Axon Outpost and Axon Lightpost, two new fixed intelligent ALPR cameras, which enhance vehicle recognition capabilities beyond traditional plate reads by capturing detailed vehicle attributes [2] - Launch of Axon Assistant, an AI voice companion integrated with Axon Body 4, providing officers with hands-free access to real-time translation and policy guidance [2] Partnerships - Axon is partnering with Ring, a leading smart security company, to enable Ring customers to share relevant video with law enforcement, facilitating faster crime resolution and neighborhood safety [2]

Core Viewpoint - Investment strategist Shay Boloor has identified a "new Mag 7" of AI-driven companies poised to shape the digital economy over the next decade [1][3]. Group 1: Original Magnificent Seven - The original Magnificent Seven includes dominant U.S. tech giants: Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla, known for their significant market influence and leadership in AI [2]. Group 2: New Mag 7 Companies - **Tesla (NASDAQ: TSLA)**: Transitioning from an EV company to a provider of a "fully integrated real-world AI loop," combining software, hardware, and energy infrastructure. Tesla's Full Self-Driving technology and projects like Optimus are central to this vision. However, it faces challenges such as declining sales and increased competition, with a stock value of $252, down 33% year-to-date [4][5]. - **Palantir (NASDAQ: PLTR)**: Redefining institutional decision-making with its AI Platform (AIP), which allows enterprises to manage complex data across various sectors. Its solutions are becoming indispensable in high-stakes environments, with a stock value of $88.55, up 17% year-to-date [7][8]. - **Snowflake (NYSE: SNOW)**: Addressing data liquidity issues in the AI economy with its Data Cloud, enabling real-time data federation. Snowflake's role is crucial as AI transitions from experimentation to production, with a stock value of $144, reflecting a nearly 8% year-to-date drop [9][10]. - **CrowdStrike (NASDAQ: CRWD)**: Building a security layer for the AI-driven future with its Falcon platform, which enhances threat detection through a global network. The stock is trading at $144.96, down 7% year-to-date [13][14]. - **Cloudflare (NYSE: NET)**: Distributing compute to the edge, enabling low-latency applications for AI. The stock has dropped 5.5% year-to-date to $106.25 [16][17]. - **Axon (NASDAQ: AXON)**: Dominating public safety infrastructure with AI-driven solutions, benefiting from long-term institutional contracts. The stock is trading at $567, down nearly 5% year-to-date [19][20]. - **Databricks**: A private firm that streamlines AI development by eliminating silos between engineering and operations, allowing for faster and more efficient AI deployment [21][22].

Core Insights - Louis Stevens is a highly regarded investment analyst with a background as a former U.S. Army engineer officer, holding an MBA and a BA in political science [1] - He founded L.A. Stevens Research and developed the LAS Index, which is a selection of stocks that has consistently outperformed market indices since its inception [2] Company Overview - L.A. Stevens Research is focused on providing investment research and analysis, catering to a diverse audience from beginners to seasoned professionals [2] - The LAS Index utilizes a proprietary method for stock selection, indicating a systematic approach to investment [2] Performance Metrics - The LAS Index has shown a track record of outperforming traditional market indices, highlighting its effectiveness as an investment strategy [2]