Here's How Much a $1000 Investment in Axon Enterprise Made 10 Years Ago Would Be Worth Today
How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Axon Enterprise (AXON) ten years ago? It may not have been easy to hold on to AXON for all that time, but if you did, how much would your investment be worth today?
Axon Enterprise's Business In-Depth
With that in mind, let's take a look at Axon Enterprise's main business drivers.
Headquartered in Scottsdale, AZ, Axon Enterprise, Inc. develops and manufactures weapons for selling to U.S. state and local governments, the U.S. federal government, international government customers and commercial enterprises. Focused on global public safety, Axon’s suite of products includes conducted energy devices, body-worn cameras, in-car cameras, cloud-hosted digital evidence management solutions, productivity software and real-time operations capabilities.
The company generates the majority of its revenues through direct sales, including its online store. Its market for body-worn and in-car cameras is exposed to intense competition from Motorola Solutions, Panasonic Corp., Reveal Media, Safe Fleet and Digital Ally Inc., among others. The market for software solutions is vulnerable to competition from Motorola Solutions, Panasonic Corp., IBM, Oracle, FotoWare and Vidizmo, among others.
Axon operates under the following two segments:
TASER: This segment caters to the manufacture of conducted energy devices ("CED") sold under its brand name, TASER. It develops tools, such as TASER devices, virtual reality training services and consumer devices, to support public safety officers in de-escalating situations, avoiding or minimizing the use of force and aiding consumer personal protection.
Software and Sensors: This segment focuses on the manufacture of fully integrated hardware and cloud-based software solutions. Within sensors, products such as Axon body cameras and Axon Fleet in-car systems, among other devices, cater to varied needs, including transparency, real-time situational awareness, and capturing evidence and integrating with software workflows. Within software, Axon is building a suite of cloud-based, software-as-a-service (SaaS) solutions that integrate with its sensors and TASER devices to drive annual recurring revenues.
The company’s fiscal year coincides with the calendar year.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Axon Enterprise ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in November 2013 would be worth $12,901.70, or a 1,190.17% gain, as of November 29, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 152.04% and the price of gold went up 56.80% over the same time frame.
Analysts are forecasting more upside for AXON too.
Axon is thriving on the back of strength across its TASER unit, driven by the solid demand for TASER devices and higher cartridge revenues. Strong initial demand for the recently launched TASER 10 energy device, which has a maximum range of 45 feet, sparks optimism about the growth of the TASER unit. Within the Software & Sensors unit, the addition of new users and associated devices to the AXON network bodes well for the company. Improvement in manufacturing efficiency is likely to drive the company’s margin performance. However, the increasing cost of sales and reduced demand for the TASER 7-series have been weighing on AXON’s performance. Hefty investments in research and development may dent its bottom line. Supply-chain woes are worrisome. The unfavorable impact of foreign currency translation might affect its performance.
Over the past four weeks, shares have rallied 11.04%, and there have been 5 higher earnings estimate revisions in the past two months for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.
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