10 Most Profitable NASDAQ Stocks To Invest In

8. Axon Enterprise Inc. (NASDAQ:AXON)

TTM Net Income: $290.7 million

5-Year Net Income CAGR: 81.03%

Number of Hedge Fund Holders: 36  

Axon Enterprise Inc. (NASDAQ:AXON) is a global leader in public safety technology, primarily producing and marketing law enforcement technology solutions, including body-worn cameras, tasers, and evidence management software. Its products are designed to improve public safety, accountability, and transparency in law enforcement agencies worldwide.

Strong demand in the TASER segment, tactical acquisitions, and strategic partnerships contributed to the company’s success. In Q2 2024, Axon Enterprise Inc. (NASDAQ:AXON) posted record revenue of $504.10 million, up 34.57% year-over-year. It booked over $1 billion in new business. The company’s cloud and services segment grew 47% year-over-year. It has seen accelerated demand for various products, including Taser 10, Draft One, and Axon Body 4, and a strategic shift toward software and services, which now make up 39% of total revenue.

Recent acquisitions, such as Sky-Hero and Fusus, have strengthened its technological capabilities and expanded its market reach, adding $27 billion to its total addressable market. These acquisitions align with its existing products and enhance its software platform, driving growth through technology integration.

Despite concerns about a potential economic downturn, the company appears to be well-positioned for continued growth. Its focus on innovation, including AI capabilities and emerging market opportunities, positions it to capitalize on industry trends and deliver long-term value to investors. Shareholders have earned a 40% CAGR over the last 5 years.

Conestoga Capital Advisors Small Cap Strategy stated the following regarding Axon Enterprise, Inc. (NASDAQ:AXON) in its first quarter 2024 investor letter:

“Axon Enterprise, Inc. (NASDAQ:AXON): This manufacturer of the TASER stun gun and body cameras has been among the top contributors to the Small Cap Composite’s total return since first added to the portfolio in 2019. Its market capitalization now exceeds $20 billion. Conestoga trimmed the position over the past few years as the market capitalization rose and, in early 2024, we fully removed AXON from client portfolios.”