Three Compelling Reasons to Invest in Axon Stock Without Hesitation Today
Ready for a deep dive into a lesser-known growth stock that's definitely got potential? Let's talk about Axon Enterprise (AXON). You might recognize it as the company behind Taser guns, but they offer a whole lot more than just non-lethal weapons.
Jeopardizing your peace and quiet, are you seeking alternatives to the big publicly-traded names that have everyone else's attention? Well, buckle up because you're in for a ride. Even though the mega-companies are keeping competitors at bay, there's still room for hidden gems like Axon Enterprise.
Who the Heck is Axon Enterprise?
You're probably more familiar with Axon than you realize. Have you ever heard about a Taser gun? It's not just some type of non-lethal conducted-energy device. Nope! It's actually the name of this lesser-known company's alternative weapon, and they've got a whole lot more in their arsenal. They manufacture body cameras worn by law enforcement and security personnel, stationary security cameras, security and recording software, and, more recently, security drones. If that's not enough, they also provide the necessary training to get the most out of all their state-of-the-art tools.
With a current revenue stream of about $2 billion, Axon's not exactly a small fish. And thanks to 2024's stock market rally, their market cap is sitting pretty at around $50 billion. That's a pretty hefty price tag compared to their revenue, but they're consistently profitable and steadily growing - so, so far, it's working.
According to rumors, Axon's projected top-line growth of around 33% is set to boost per-share profits from $4.14 in 2023 to a whopping $5.24 in 2024, eventually reaching $6.29 per share in 2025.
Sure, the stock's pricy right now, but the market seems to love these kinds of earnings growth when it looks unstoppable.
So, what's the big draw for Axon, beyond their steep valuation and unstoppable earnings growth? Let's dive into some of the key reasons you might wanna jump on this growing gravy train.
Can't-Miss Reasons to Buy Axon Stock
These aren't the only reasons you might want to hop on this stock since it took a brief dip from its early December high. But these are the top three, checkmarking all the boxes that turn a good investment prospect into a great one.
1. A Growing Market on the Brink of Explosion
It may not sound like the most scintillating industry, but business in the security technology sector is booming. And you can expect that trend to continue. Mordor Intelligence estimates that the body cam market alone will grow by an annualized rate of 16% through 2030, while Business Research Insights has more optimistic predictions, pointing towards a 34% growth rate per year and a staggering $24 billion market size by 2028.
Whichever projections end up being closer to the mark, it's clear that the momentum in the industry isn't slowing down - and who doesn't want a piece of that? After all, interactions with law enforcement professionals are becoming more commonplace, and body cams are growing increasingly popular because they're crucial tools for protecting the innocent and serving as evidence in potential legal disputes.
2. The One-Stop Axon Solution
Axon doesn't just help police departments record their interactions. They also provide platforms that are tailored for court evidence use, offering support and software solutions for tasks like redaction, conversation transcription, and investigative matters. Axon's software, like Axon Evidence, is specifically designed for prosecutors and public defenders, helping them assemble video timelines and create reports. And their record management tools simplify the report writing process.
It may sound like they're just selling Tasers, but Axon offers much more than that. They provide training using virtual reality, sensors that attach to gun holsters to auto-activate body cameras, and centralized digital storage for recorded footage. Everything you need from a single source.
3. Drones: A Game-Changing Opportunity
Although drones aren't exactly new, technology has improved them considerably in just a few short years, making them far more useful to emergency response teams than ever before. Take, for example, Axon's aerial drone, the Axon Air. This camera-equipped drone can be flown remotely and is capable of providing real-time information from inaccessible or potentially dangerous locations. Their latest innovation, Sky Hero, takes the capabilities of drone technology to a new level. This drone can be delivered and deployed remotely by a ground-based drone, making it an invaluable tool for emergency personnel in tricky situations.
The opportunity that Axon's drones present isn't limited to just the law enforcement and emergency response market. They also have the potential to revolutionize other industries and expand the company's revenue streams significantly.
But remember, Axon might not be for everyone. The stock's pricy, and as a growth stock it can be pretty volatile. If you can handle that, though, Axon offers a whole lot of near-term and long-term upside potential. Plus, thanks to its growth regardless of economic conditions, Axon could be an intriguing choice for a defensive investment strategy.
After considering the potential of Axon Enterprise, you might decide to invest some of your money into their stock. This move would align with your finance strategies and contribute to the growth of this innovative company.
Furthermore, as Axon Enterprise continues to expand its offerings, such as its drone technology, it opens up new opportunities for substantial returns on your investment in finance and the stock market.
