The market’s reaction to the fourth-quarter earnings results of Axon Enterprise(NASDAQ:AAXN) is one of those opportunities investors crave but don’t see nearly often enough to take advantage of. By sending the stun-gun maker’s stock 10% lower due to it ostensibly missing Wall Street’s earnings expectations, the market has given investors the opportunity to capitalize on that myopia, because Axon is actually executing well on its long-term goals.
Eye on the future
On the surface, the TASER and Axon body camera manufacturer looks wildly expensive at 93 times trailing earnings and over 60 times next year’s estimates, even after its stock tumbled, but that’s only if you think of it as a hardware maker. Instead, it’s really a tech stock in disguise, and one that’s growing rapidly, so you can’t count on traditional metrics to price it. more