Axos Financial (AX) Soars 6.2%: Is Further Upside Left in the Stock?

Core Viewpoint - Axos Financial (AX) shares have experienced a significant rally, driven by positive market sentiment and company-specific developments, including a decrease in the effective tax rate and upward revisions in earnings estimates [1][2][3]. Company Developments - Axos Financial shares increased by 6.2% in the last trading session, closing at $83.18, with notable trading volume [1]. - The company anticipates a reduction in its effective tax rate by approximately 3% starting in fiscal 2026, leading to a one-time, non-cash impairment charge of nearly $4 million in Q4 of fiscal 2025 [2]. - DA Davidson raised its price target for Axos Financial from $92.50 to $96.00, maintaining a buy rating, reflecting the company's strong growth and profitability metrics [3]. Earnings Expectations - The upcoming quarterly earnings report for Axos Financial is expected to show earnings of $1.84 per share, representing a year-over-year increase of 0.6%, with revenues projected at $312.44 million, up 7.4% from the previous year [4]. - The consensus EPS estimate for the quarter has been revised slightly higher over the last 30 days, indicating a positive trend that typically correlates with stock price appreciation [5]. Industry Context - Axos Financial operates within the Zacks Financial - Miscellaneous Services industry, which is currently experiencing broader market optimism, contributing to investor confidence in financial services stocks [3][5]. - Another company in the same industry, HA Sustainable Infrastructure Capital, has seen its consensus EPS estimate remain unchanged at $0.64, reflecting a year-over-year change of 1.6% [6].