The technology industry is experiencing healthy growth. One of the companies that we found attractive from the tech industry is Axon Enterprises. The Axon stock might be a good investment after a month of corrections. In essence, Axon Enterprise designs law enforcement equipment and electrical equipment for personal defense. Their line of products includes smart weapons, cameras, VR training, and various other software.
But it’s not just for law enforcement that Axon Enterprise designs these products. The company offers its products to anyone from federal agencies to personal safety. So what’s so interesting about the Axon stock price that makes it so attractive for investors? Is it a good stock pick to go for this week?
Axon Stock, Revenue, and Products
The company makes the most from its flagship line of products; the Taser 7, Taser 7 CQ, and Taser X26P. Their line of tasers also includes civilian models, but they’re not part of this line. Reports state that Axon Enterprise experiences strong demands for these products. In 2020, the company made revenue of $681 million. That’s a 29% increase year over year.
For 2021 the company made $219 million in their reports for June. In total, that’s $806 million from June the previous year. So the company is making healthy revenue returns. That’s a positive sign for the Axon stock price. If we look at Axon Enterprises’ revenue returns from the previous year, we see a healthy percentage return.
Axon has openly said that their Taser is a best-selling product. Sales for 2021 for the Taser 7 jumped 67% from the previous year. Other electroshock devices, such as the Taser products for civilian use make up 26% of the revenue. As Axon Enterprise shows healthy gains, are they reflected on the market?
Axon Stock Analysis
The current price of Axon stock (AXON) sits at $170.25. In the previous month, the stock hasn’t been able to recover the 52-week high of $212.37. The stock went through multiple series of corrections before settling in the $165 – $185 mark. Although the previous month shows a 1.6% increase, we get a better sense of how the Axon stock performs by looking at other metrics.
Over six months, the Axon stock sees a 29.92% increase or a jump of $38.27. The year-to-date performance is also quite impressive. Over that time, the Axon stock enjoys a 45.70% rise. Overall, the Axon stock makes healthy gains year on year and presents an opportunity for investors. By looking at the revenue numbers for 2021, it all points to Axon Enterprise seeing even healthier gains on the stock market.
As law enforcement and personal defense equipment become more popular, Axon Enterprise is a company that will capitalize. With the recent news that Motorola Solutions plans on entering the market, many experts speculate how big a threat the move really is for Axon Enterprise.
But considering that Motorola is a financially bigger player than Axon, the concerns are indeed valid. The conducted electrical weapons market (CEW) expects to grow at a CAGR of 10.21% the following year. As Axon’s CEO believes police officers won’t need guns in the future, that opens more potential for Axon to capitalize in this untapped market.
Axon Stock – Is It Worth?
Axon Enterprise isn’t a small nor a new player in the CEW industry. Their line of products is diverse but falls under the same umbrella of law enforcement and personal equipment. As the demand for such equipment rises, we believe Axon Enterprise will be right up there as one of the few companies to capitalize on the demand.
With a current stock price of $170.25, we believe Axon Enterprise to be one of the best tech stocks for 2021.
Partner at Vega Capital Management - a private funds management company.
An experienced portfolio manager with 10+ years of proven and reputable track record in investment management and financial analysis. Currently, a partner at one of the fastest-growing private fund management companies in southeast Europe, Kiril has been tending to a loyal international base of client-investors and partners. When he is not crunching numbers and increasing his client’s wealth, he reminisces about his Michelin-star restaurant cheffing years and fondness of the culinary arts.