When compiling a stock watch list, a successful strategy is to look for stocks with a relative strength rating of 80 or higher. AxonEnterprise (AXON) is a stock that just broke the mark and now has a score of 81. Axon shares fell 0.8% to 116.19 on Wednesday. The stock rose slightly in after-hours trading.
The 81 RS rating pushes security device maker Axon’s stock into an elite group. Market research has found that the stocks that go on to make the biggest gains tend to have an RS rating of 80 or better when they start their biggest runs.
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Axon stock rises amid continued expansion
Axon, originally known for its legendary Taser stun gun, has not only maintained its leadership position there, but has grown into a security company offering everything from data storage to handheld camera systems to police and other law enforcement agencies. Nevertheless, the company is sticking to its roots. It is preparing for the upcoming Tasercon public safety training event in Las Vegas on January 23-26.
Among its other major ratings, Axon Enterprise has an excellent EPS rating of 96, placing it in the top 4% of companies for earnings growth over the last quarter and year. Axon stock has a composite rating of 86, which is the best possible 99. And it has an accumulation/distribution rating of B- on a scale of A+ to E. The B rating indicates that institutional investors, such as ETFs and insurance funds, are moderate-weight buyers are.
Like many other companies, Axon stock hit a multi-year high of 209 last November, then began to consolidate, falling as low as 82.49 in mid-May and then rebounding. It rose to 116.19 on Wednesday on strong double-digit sales and earnings gains over the past two quarters. Axon’s EPS rose 45% and then 16% during that time, while revenue grew 31% in both quarters. It is currently not in a reasonable buying range. See if it’s able to form and break out a proper chart pattern such as: B. a mug with a handle or a flat base.
Among the top 5 of the industry group
Axon stock ranks 3rd among its peers in the Security/Safety industry. Burglar and fire alarm technology company Napco security (NSSC) and manufacturer of street cleaning equipment and warning sirens federal signal (FSS) are also among the top-rated stocks in the group.
When looking for the best stocks to buy and watch, keep an eye on relative price strength.
IBD’s unique rating identifies market leadership with a score from 1 (worst) to 99 (best). The rating shows how a stock’s price performance compares to all other stocks in our database over the last 52 weeks.
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