1. Axon Enterprise Inc. (NASDAQ:AXON)
Number of Hedge Fund Holders: 46
Axon Enterprise Inc. (NASDAQ:AXON), formerly known as TASER International, is a leading American company focused on developing technology and products for public safety, including military and law enforcement applications. The company’s suite of products and solutions includes TASER energy devices, body cameras, in-car cameras, cloud-hosted digital evidence management solutions, productivity software, and real-time operations capabilities.
In Q3 2024, Axon Enterprise Inc. (NASDAQ:AXON) reported impressive financial results, with revenue reaching $544 million, a 32% increase year-over-year. This growth was driven by strong demand for its TASER products and cloud services, both of which saw a 36% rise year-over-year. Axon’s (NASDAQ:AXON) annual recurring revenue also grew 36% to $885 million, highlighting its successful subscription model. Axon’s net income was $67 million, supporting a robust adjusted EBITDA of $145 million.
Axon Enterprise Inc. (NASDAQ:AXON) has managed to achieve over 30% annual revenue growth in each of the first three quarters of 2024. Q3 2024 marks the company’s 11th consecutive quarter of growth above 25%. The company has positioned itself as a leader in public safety technology by focusing on innovative solutions. Axon Enterprise Inc.’s (NASDAQ:AXON) commitment to artificial intelligence (AI) is evident in its suite of AI-powered products, such as Axon Auto-Transcribe, Draft One, automatic license plate reading (ALPR), and video redaction, which are designed to improve operational efficiency and investigative accuracy. These tools help law enforcement agencies streamline their processes.
As of the third quarter of 2024, Axon Enterprise Inc. (NASDAQ:AXON) was held by 46 hedge funds, according to Insider Monkey’s database. Carillon Tower Advisers stated the following regarding Axon Enterprise Inc. (NASDAQ:AXON) in its “Carillon Eagle Mid Cap Growth Fund” third quarter 2024 investor letter:
“Axon Enterprise Inc. (NASDAQ:AXON) is a market-leading provider of next-generation law enforcement technology solutions. The company has had ongoing success with new product rollouts within both its TASER and body camera product lines, as well as its innovative software offerings, and the stock has responded accordingly. The company remains intensely focused on the development of new law enforcement solutions, and we believe recent developments in interesting areas such as drones, as well as in artificial intelligence-enabled solutions for evidence- and administrative-related uses, could provide an additional tailwind to the company’s robust growth.”
Overall, AXON ranks first among the 10 best prison and law enforcement stocks to invest in. While we acknowledge the potential of prison and law enforcement stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AXON but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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