Axon Surges 97.5% in 6 Months: Is the Stock Still Worth Buying?

Core Viewpoint - Axon Enterprise, Inc. has experienced significant stock price appreciation, outperforming both the industry and the S&P 500, driven by strong demand in its TASER segment and strategic investments in technology [1][5][9]. Stock Performance - Axon's shares have surged 97.5% over the past six months, compared to the industry growth of 18.3% and S&P 500's 12.4% [1]. - The stock closed at $610.32, below its 52-week high of$698.67 and above its 52-week low of $247.04, indicating solid upward momentum [3]. Business Drivers - The TASER segment has seen a revenue increase of 32.1$2.07 billion for 2024, reflecting a year-over-year growth of approximately 32%, with adjusted EBITDA expected to reach $510 million [9]. - The company's trailing 12-month return on equity (ROE) stands at 20.42$5.29 per share, while estimates for 2025 have increased by 0.3% to $6.50 per share [14]. Valuation Concerns - Axon's forward 12-month price-to-earnings (P/E) ratio is 92.48X, considerably higher than the industry average of 38.22X, which may pose risks if market sentiment declines [16]. Strategic Acquisitions - The company has made strategic acquisitions, including Dedrone and Fusus, to enhance its product offerings and expand its market presence [10]. Growth Potential - Robust momentum in the TASER and Software & Sensors segments, along with investments in AI, drones, and robotics, positions the company favorably for future growth [17].