Is Trending Stock Axon Enterprise, Inc (AXON) a Buy Now?

Core Viewpoint - Axon Enterprise (AXON) has shown strong stock performance recently, with a return of +11.2% over the past month, significantly outperforming the Zacks S&P 500 composite's +1.8% and the Zacks Security and Safety Services industry's +2.8% [2] Earnings Estimates - For the current quarter, Axon is expected to post earnings of $1.21 per share, reflecting an increase of +18.6% year-over-year, with the Zacks Consensus Estimate remaining unchanged over the last 30 days [5] - The consensus earnings estimate for the current fiscal year is $4.91, indicating a change of +18.6% from the prior year, also unchanged over the last 30 days [5] - For the next fiscal year, the consensus earnings estimate is $5.99, suggesting a change of +22.1% from the previous year, with a slight increase of +0.3% over the past month [6] Revenue Growth - The consensus sales estimate for the current quarter is $526.43 million, indicating a year-over-year change of +27.3% [9] - For the current fiscal year, the revenue estimate is $2.04 billion, reflecting a change of +30.6%, while the estimate for the next fiscal year is $2.48 billion, indicating a change of +21.5% [9] Recent Performance - In the last reported quarter, Axon achieved revenues of $504.1 million, representing a year-over-year increase of +34.6%, with an EPS of $1.20 compared to $1.11 a year ago [10] - The reported revenues exceeded the Zacks Consensus Estimate of $476.92 million by +5.7%, and the EPS surprise was +13.21% [11] - Axon has consistently beaten consensus EPS and revenue estimates in the trailing four quarters [11] Valuation - Axon is graded F in the Zacks Value Style Score, indicating it is trading at a premium compared to its peers [15] - Valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) are essential for assessing whether the stock is overvalued, fairly valued, or undervalued [13][14] Overall Outlook - The Zacks Rank 3 suggests that Axon may perform in line with the broader market in the near term, despite the market buzz surrounding the company [16]