Core Insights - Steven Cress is the Head of Quantitative Strategies at Seeking Alpha, managing quant ratings and factor grades for stocks and ETFs [1][2] - He leads Alpha Picks, a monthly selection of two attractive stocks to buy and determines optimal selling times [1][2] - Cress emphasizes a data-driven approach to investment, aiming to eliminate emotional biases and simplify complex research [2] Company Overview - Seeking Alpha has developed a quantitative stock rating system that interprets data for investors, providing insights and saving time [2] - The platform offers a systematic stock recommendation tool, Alpha Picks, designed for long-term investors to build a high-quality portfolio [2] - Cress previously founded CressCap Investment Research, which was acquired by Seeking Alpha in 2018, enhancing its quant analysis capabilities [2] Leadership Background - Steven Cress has over 30 years of experience in equity research, quantitative strategies, and portfolio management [2] - His prior roles include running a proprietary trading desk at Morgan Stanley and leading international business development at Northern Trust [2] - Cress is recognized for his contributions to the field of quantitative analysis and market data [2]

Axon Enterprise Inc. (NASDAQ:AXON) is one of the best industrial stocks to buy according to Wall Street analysts. Axon Enterprise Inc. (NASDAQ:AXON) holds a strong Buy rating from 14 Wall Street analysts, including 13 Buy and 1 Hold. The average price target on the stock is $814.58, implying 47.85% upside potential from current levels of $550.67 a share. Axon Enterprise, Inc. (AXON) is a Buy Following Pull back and amid $3B Scale Prospects: TD Cowen On November 20, analysts at TD Cowen reiterated their B ...

With a market cap of $43.1 billion, Axon Enterprise, Inc. (AXON) is a global public safety technology company that develops integrated hardware and cloud-based software solutions for law enforcement and other first responders. Its two segments: Software and Sensors, and TASER, provide products ranging from body and in-car cameras to conduct energy devices, digital evidence management, and VR training. Companies valued at $10 billion or more are generally considered "large-cap" stocks, and Axon Enterprise ...

Core Insights - Axon Enterprise, Inc. is experiencing strong growth in its Connected Devices segment, with revenues increasing 26% year over year in the first nine months of 2025, driven by demand for TASER 10 products, virtual reality training services, and counter-drone equipment [1][10] Segment Performance - The TASER product line saw a revenue increase of 17% year over year in Q3 2025, primarily due to the TASER 10 [3] - Revenues from Personal Sensors surged 20%, led by the Axon Body 4, which has received strong orders since its launch [2][3] - Platform Solutions revenues soared 71%, supported by counter-drone, virtual reality, and fleet services, contributing to a 23.6% year-over-year increase in the Connected Devices segment's total revenues, reaching $405.4 million [3][10] Market Trends - The rise in terrorism and criminal activities is expected to positively impact demand for Axon's Connected Devices unit in the upcoming quarters [4][10] Peer Comparison - Teledyne Technologies' Digital Imaging segment reported a 2.2% revenue increase year over year to $785.4 million in Q3 2025, while Woodward, Inc.'s Industrial business segment saw a 10.6% increase in net sales to $334 million in Q4 2025 [5][6] Valuation and Estimates - Axon is trading at a forward price-to-earnings ratio of 72.32X, significantly above the industry average of 43.63X, and carries a Value Score of F [11] - The Zacks Consensus Estimate for Axon's 2025 earnings has decreased by 8.1% over the past 60 days [13]

Axon Enterprise, Inc. ( AXON ) is a company I have admired for quite some time. This is a growing business excelling in its niche market and its founder continues to lead this company in the rightAnalyst’s Disclosure:I/we have a beneficial long position in the shares of AXON either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with a ...

Core Insights - Axon Enterprise, Inc. (AXON) is recognized as a growing business excelling in its niche market with strong leadership from its founder [1] Company Overview - Axon operates in a specialized market, indicating a focused business strategy that leverages its unique position [1] Leadership - The founder of Axon continues to guide the company effectively, suggesting stability and a clear vision for future growth [1]

Core Thesis - Axon Enterprise, Inc. is viewed positively due to its strong market position and growth potential despite recent stock price volatility [1][5] Company Overview - Axon is a leader in non-lethal electric weapons, particularly Taser products, which account for approximately 40% of its revenue [2] - The company has diversified into related areas such as body-worn cameras, dash cams, and a high-margin cloud software platform, Evidence.com, creating a comprehensive ecosystem [2] Financial Performance - Axon reported revenue of $710.6 million, reflecting a year-over-year growth of 30.6%, slightly exceeding expectations [3] - However, adjusted EPS of $1.17 fell short of estimates, contributing to a 35% stock drawdown, including a 14% drop post-earnings report [3][4] Margin Pressures - Hardware margins have been impacted by tariffs from suppliers in China, Taiwan, and Vietnam, with Q3 being the first quarter fully affected by these costs [4] - R&D spending increased by 50% due to higher stock-based compensation, further straining margins [4] Valuation and Market Position - Despite the recent sell-off, Axon trades at a premium valuation, historically rarely dipping below 100x earnings [5] - The company is expected to benefit from new product offerings, international expansion, and favorable industry trends, supporting a long-term growth narrative [5] Previous Coverage - A previous bullish thesis highlighted rapid revenue growth and strong product adoption, with Axon's stock appreciating approximately 6.78% since that coverage [6]

Core Viewpoint - Axon Enterprise reported mixed results in its Q3 2025 earnings, with adjusted earnings per share missing estimates while revenues exceeded expectations, indicating a complex financial landscape for the company moving forward [2][3]. Financial Performance - Adjusted earnings for Q3 2025 were $1.17 per share, missing the Zacks Consensus Estimate of $1.63, reflecting a 19.3% year-over-year decline due to rising operating costs [2]. - Total revenues reached $710.6 million, surpassing the consensus estimate of $700 million and marking a 31% increase year-over-year, driven by strong demand for TASER 10, Axon Body 4, and counter-drone equipment [3]. Business Segment Analysis - The Connected Devices segment generated revenues of $405.4 million, a 23.6% year-over-year increase, with a decrease in adjusted gross margin to 52.1% from 54.5% [5]. - The Software & Services segment saw revenues rise by 41.1% year-over-year to $305.2 million, with an adjusted gross margin increase to 76.8% from 76.3% [6]. Cost and Margin Profile - Cost of sales increased by 32.7% year-over-year to $283.3 million, while total operating expenses climbed 40% to $429.5 million, leading to a decrease in adjusted gross margin to 62.7% from 63.2% [7]. Balance Sheet and Cash Flow - As of Q3 2025, Axon had cash and cash equivalents of $1.42 billion, a significant increase from $454.8 million at the end of 2024 [8]. - The company reported a negative adjusted free cash flow of $71.4 million for the first nine months of 2025, compared to a positive $117.5 million in the prior-year period [9]. Future Outlook - For Q4 2025, Axon anticipates revenues between $750 million and $755 million, indicating a 31% increase at the midpoint, with projected adjusted EBITDA of $178-$182 million [10][11]. - For the full year 2025, Axon expects revenues of approximately $2.74 billion, reflecting about 31% year-over-year growth, with an adjusted EBITDA margin of around 25% [12]. Estimate Trends - Recent estimates for Axon have shown a downward trend, with a significant shift of -283.33% in consensus estimates over the past month [14]. - The stock currently holds a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the coming months [16]. Industry Comparison - Axon operates within the Zacks Aerospace - Defense Equipment industry, where competitor ATI reported revenues of $1.13 billion for the last quarter, reflecting a year-over-year increase of 7.1% [17]. - ATI's expected earnings for the current quarter are $0.88 per share, indicating a year-over-year change of +11.4%, with a Zacks Rank 2 (Buy) [18].

Core Insights - Axon Enterprise, Inc. (AXON) has experienced a 31.1% decline in stock price over the past six months, underperforming both the industry and the S&P 500, which grew by 3.8% and 17.9% respectively [1][2] - Despite the recent decline, AXON has delivered a 134.6% shareholder return over the past couple of years, indicating strong long-term performance [3] - The company is facing near-term challenges due to rising costs, increased debt levels, and a high valuation, which may weigh on its prospects [8] Financial Performance - Axon's cost of sales increased significantly, with year-over-year increases of 18.2%, 34.4%, and 32.7% in the first three quarters of 2025, and a 39% increase in 2024 [4] - Selling, general, and administrative expenses surged by 48%, 41.7%, and 31.5% in the first three quarters of 2025, with a 49.8% increase in 2024 [5] - The company's long-term notes payable reached $1.73 billion by the end of the third quarter of 2025, up from zero at the end of 2024, primarily due to strategic investments and expansion activities [6] Valuation Concerns - AXON's forward 12-month price-to-earnings (P/E) ratio is 71.25X, significantly higher than the industry average of 42.55X, making it vulnerable to market sentiment shifts [9] Growth Prospects - The Connected Devices segment is a key growth driver, with revenues increasing by 26% year over year in the first nine months of 2025, supported by the popularity of the TASER 10 products [10] - The introduction of the Axon Body 4 camera in April 2023 has generated significant demand, contributing to a 17% year-over-year revenue increase from the TASER product line [11] - The Software & Services segment also showed strong growth, with a 39.6% revenue increase in the first nine months of 2025, driven by digital evidence management and premium features [12] - Axon raised its revenue guidance for 2025 to approximately $2.74 billion, indicating a growth of about 31% year over year [13] Return on Equity - Axon's trailing 12-month return on equity (ROE) was 20.84%, significantly higher than the industry's 9.44%, reflecting efficient use of shareholder funds [14] Earnings Estimates - The Zacks Consensus Estimate for 2025 earnings is $6.35 per share, reflecting a decrease of 8.1% in the past 60 days but indicating a year-over-year growth of 6.9% [17]

Core Insights - The article highlights three stocks that have significantly outperformed the market over the past decade: Intuitive Surgical, Nvidia, and Axon Enterprise, with returns ranging from 887% to over 22,120% [2][4][8]. Intuitive Surgical - Intuitive Surgical specializes in robotic-assisted surgical systems, enhancing surgical precision and patient outcomes [3]. - Over the past decade, Intuitive Surgical's shares have increased by more than 887%, with notable underperformance in 2019 and 2022 [4]. - The company has a market capitalization of $202 billion and a gross margin of 66.37%, with projected growth of around 17% in da Vinci procedures this year [6]. - Despite a high price-to-earnings (P/E) ratio of 75, the stock is considered a promising long-term investment due to its innovative products [7]. Nvidia - Nvidia, a leading chipmaker, has achieved returns exceeding 22,120% over the past decade and is currently the most valuable company globally [8]. - The stock has risen 34% this year, with only two years of underperformance against the S&P 500 in 2018 and 2022 [8]. - Nvidia has a market capitalization of $4,364 billion and a gross margin of 70.05%, with significant free cash flow of over $77 billion [10][11]. - The stock trades at a P/E ratio of 44, which is considered high but justifiable given its growth potential in the AI sector [9]. Axon Enterprise - Axon Enterprise, known for its body cameras and less-lethal weapons, has seen its valuation rise by 2,860% over the past decade [12]. - The company had off years in 2015 and 2017 but generated positive returns in 2022 amid market turmoil [12]. - Axon has a market capitalization of $43 billion and a gross margin of 60.31%, but it trades at a high P/E ratio of 171, indicating potential overvaluation [14][13]. - The stock is currently down 10% this year, and while it has strong growth prospects, it is advised to be cautious due to its high valuation [15].