Defense stocks were in focus after the inauguration of U.S. President Donald Trump, and could present an intriguing opportunity for investors looking to extend Wall Street's tailwinds into February. According to data from Schaeffer's Senior Quantitative Analyst Rocky White, Axon Enterprise Inc (NASDAQ:AXON) and Northrop Grumman Corp (NYSE:NOC) are among the best names to own next month.AXON and NOC averaged impressive February gains of 8% and 4.1% over the past 10 years, respectively, both finishing higher ...

Core Viewpoint - Axon Enterprise, Inc. has experienced significant stock price appreciation, outperforming both the industry and the S&P 500, driven by strong demand in its TASER segment and strategic investments in technology [1][5][9]. Stock Performance - Axon's shares have surged 97.5% over the past six months, compared to the industry growth of 18.3% and S&P 500's 12.4% [1]. - The stock closed at $610.32, below its 52-week high of $698.67 and above its 52-week low of $247.04, indicating solid upward momentum [3]. Business Drivers - The TASER segment has seen a revenue increase of 32.1% year-over-year in the first nine months of 2024, driven by strong demand for TASER devices and virtual reality training services [5]. - The Software & Sensors segment's revenues increased by 34.2% in the same period, supported by a growing user base and higher average revenue per user [7]. - The introduction of the Axon Body 4 camera in April 2023 has generated significant demand, further bolstering segment growth [8]. Financial Outlook - Axon projects revenues of $2.07 billion for 2024, reflecting a year-over-year growth of approximately 32%, with adjusted EBITDA expected to reach $510 million [9]. - The company's trailing 12-month return on equity (ROE) stands at 20.42%, significantly higher than the industry average of 10.93% [11]. Earnings Estimates - Earnings estimates for 2024 remain stable at $5.29 per share, while estimates for 2025 have increased by 0.3% to $6.50 per share [14]. Valuation Concerns - Axon's forward 12-month price-to-earnings (P/E) ratio is 92.48X, considerably higher than the industry average of 38.22X, which may pose risks if market sentiment declines [16]. Strategic Acquisitions - The company has made strategic acquisitions, including Dedrone and Fusus, to enhance its product offerings and expand its market presence [10]. Growth Potential - Robust momentum in the TASER and Software & Sensors segments, along with investments in AI, drones, and robotics, positions the company favorably for future growth [17].

Among last year's top gainers was Axon Enterprise (AXON 0.95%), which makes tech-based software and hardware for the law enforcement and public safety industries.Axon has been a winning stock for a long time, but 2024 was a breakout year with the stock's 130% gain making it one of the best performers in the S&P 500. Axon is launching new products and services, developing an artificial intelligence (AI) platform, and benefiting from tailwinds in its industry. Can it double again this year?Tailwinds and high ...

Company Overview - Axon Enterprise is a relatively unknown company with few direct competitors, operating in a growing market that could potentially explode [2] - The company is known for its Taser brand of non-lethal conducted-energy devices, body cameras, stationary security cameras, security and recording software, and security drones [4] - Axon provides comprehensive training for the effective use of its technological tools [4] - The company generates approximately $2 billion in annual revenue and has a market capitalization of just under $50 billion [5] - Axon is consistently profitable and increasingly so, with projected top-line growth of nearly 33% [5][6] - Earnings per share are expected to rise from $4.14 in 2023 to $5.24 in 2024, and further to $6.29 in the following year [6] Market Opportunity - The security technology industry is growing, with the body cam market alone expected to grow at an annualized pace of 16% through 2030, according to Mordor Intelligence [9] - Business Research Insights projects the body cam market to grow at a rate closer to 34% annually, reaching a value of over $24 billion [9] - The increasing prevalence and confrontational nature of interactions with law enforcement professionals are driving the popularity of body cams, as they protect the innocent and provide evidence in case of litigation [10] Competitive Advantages - Axon offers a one-stop, all-encompassing solution for law enforcement, including body cameras, software for evidence management, and tools for report writing [11] - The company provides virtual reality-based training for its non-lethal weapons and sensors that automatically activate body-worn cameras during potential interactions [12] - Axon's solutions are custom-built and turnkey, making them easy for agencies and police departments to adopt and use [13] Growth Drivers - Axon's drone technology, including the Axon Air aerial drone and Sky Hero, offers new tools for emergency responders, providing real-time information in inaccessible or unsafe areas [15][16] - The police drone market is expected to grow at an annualized rate of more than 11% through 2030, according to Lucintel [17] - Axon's drones are not limited to police departments and law enforcement agencies, offering additional revenue streams without cannibalizing existing business [17] Investment Potential - Axon is a high-growth stock with significant near-term and long-term upside potential, despite its steep valuation and potential volatility [18] - The company has demonstrated the ability to drive sales and earnings growth regardless of economic conditions, making it a compelling pick for investors [19]

The most recent trading session ended with Axon Enterprise (AXON) standing at $593.89, reflecting a +1.37% shift from the previouse trading day's closing. This move outpaced the S&P 500's daily gain of 1%. Elsewhere, the Dow gained 0.78%, while the tech-heavy Nasdaq added 1.51%.Shares of the maker of stun guns and body cameras have depreciated by 4.85% over the course of the past month, underperforming the Aerospace sector's loss of 0.45% and the S&P 500's loss of 2.14%.Market participants will be closely f ...

Shares of Axon Enterprise (AXON -1.01%) were soaring last year as the law enforcement tech company continued to show brisk growth and introduce new products. The maker of products like Tasers and police body cameras also rose following the election on hopes that Trump administration policies like mass deportation would lead to more spending on its products by law enforcement agencies.The tech stock finished the year up 130%, according to data from S&P Global Market Intelligence.As you can see from the chart ...

Despite more than doubling in 2024, the body camera specialist is ready to record another strong year.Stunning and camera ready, Axon Enterprise (AXON 2.72%) has been a portfolio game changer for long-term investors. The stock more than doubled last year and nearly quadrupled over the past three years, and it happens to be a 20-bagger since I bought in several years ago.That said, hot stocks cool off, making Axon perhaps a puzzling choice as a top stock to buy this month. The maker of namesake wearable body ...

The broader U.S. equity markets have witnessed significant volatility over the past few trading days. Solid economic data raised concerns regarding the Federal Reserve’s proposed interest rate cuts this year. The latest data from the Institute for Supply Management revealed that the non-manufacturing purchasing managers index (PMI) increased to 54.1 in December from 52.1 in November amid strong demand. This dragged the market lower yesterday after it witnessed back-to-back gains in the two preceding trading ...

Company Overview - Axon Enterprise specializes in public safety products, originally known for its Taser devices, and has expanded into sensors and software [3] - The company dominates the market for conducted energy devices and has leveraged its customer relationships to lead in body-worn cameras and digital evidence management software [3] - Axon operates in a $77 billion addressable market, with current revenue of $1.9 billion representing less than 3% of this potential [4] Financial Performance - Axon's shares have surged 1,780% over the last two decades, equating to an annual growth rate of 15.8% [1] - The company has exceeded consensus earnings estimates for the last 12 quarters, beating estimates by an average of 34% in the last six quarters [10] - Total revenue increased by 32% to $1.9 billion in the last four quarters [4] Market Position and Growth Opportunities - Axon has a strong competitive position in multiple markets, including body-worn cameras, digital evidence management, and situational awareness platforms [7] - The company has significant growth potential in U.S. federal law enforcement, commercial enterprise verticals, and international law enforcement markets [4] - Axon's management sees ample room for growth, with the company actively developing new products and expanding into new geographies [8] Product Innovation and AI Integration - Axon has incorporated AI into its products, such as digital evidence management software, which automates transcription and redaction of audio and video files [5] - The company's Draft One generative AI software, introduced in April 2024, reached a $100 million revenue pipeline faster than any other product in company history [6] - Axon's AI-driven products, including license plate recognition and automated police report writing, are enhancing law enforcement workflows [5][6] Analyst Sentiment and Valuation - Wall Street is overwhelmingly bullish on Axon, with 100% of the 15 analysts covering the stock giving it a buy rating [2] - The stock currently trades at 120 times adjusted earnings, which is considered expensive, but Wall Street may be underestimating future earnings growth [9] - If Axon continues to exceed earnings expectations, its current valuation could become more reasonable in hindsight [10]

Sea Limited - Sea Limited's stock experienced a 162% gain in 2024, making it one of the best performers on the stock market after a 77% drop in 2022 and an additional 22% decline in 2023 [1] - The company's revenue growth rate surged to 25.6% year over year through the first nine months of 2024, compared to a 4.9% growth in 2023 [3] - Sea's e-commerce segment hit a year-to-date high of 43% growth in Q3 2024, despite a 11% year-over-year reduction in sales and marketing spending [5] - The company's financial services revenue grew 38% year over year in Q3 2024, reaching $616 million for the quarter, indicating significant growth potential [14] - Bookings for Sea's video game business jumped 24% in Q3 2024, pointing to future revenue growth [14] - Sea Limited's stock trades at just 4 times sales, making it the cheapest among the three companies analyzed [15] Axon Enterprise - Axon Enterprise's stock gained 130% in 2024, driven by its expansion into new products and use cases, such as drones and body cameras for law enforcement agencies [2][6] - The company expects to report revenue growth of approximately 32% to $2.07 billion for full-year 2024, following two consecutive years of greater-than-30% growth [7] - Axon's valuation is currently trading at 24 times sales, which is twice as high as its three-year average, making it expensive for new investors [11] Spotify - Spotify's stock gained 138% in 2024, officially erasing its 75% plunge from 2021 and 2022 and setting new all-time highs [2][8] - The company's premium subscriber base grew 12% year over year to 252 million users in Q3 2024, despite price increases for its subscription plans [8] - Spotify's gross margin and operating margin hit all-time highs in Q3 2024, driven by increased subscriber numbers and higher prices [9] - The company has raised prices two years in a row and conducted layoffs, which improved profitability but may limit future growth potential [13] Industry and Market Context - Sea Limited, Axon Enterprise, and Spotify were among the large-cap stocks that experienced triple-digit gains in 2024 [2] - The e-commerce space in Asia, where Sea Limited is based, is highly competitive but also full of potential, leading to significant investment in sales and marketing [4] - Axon Enterprise's expansion into new markets and products, such as drones and body cameras, highlights the growing demand for law enforcement and security solutions [6] - Spotify's success in 2024 underscores the strong demand for digital content platforms and the potential for operating leverage as subscriber numbers grow [9]