11 Best Aerospace and Defense Stocks to Buy Right Now

9. Axon Enterprise, Inc. (NASDAQ:AXON)

Number of Hedge Fund Holders: 46

Axon Enterprise, Inc. (NASDAQ:AXON) is a company that focuses on providing advanced technology solutions for law enforcement and public safety. The products developed by the company include hardware such as cameras and TASERs, and cloud software for managing evidence and operations. It primarily serves law enforcement agencies at all levels including private security firms.

The company delivered robust growth during its third quarter results of fiscal 2024. The revenue of $544 million increased 32% year-over-year, surpassing analyst expectations. Revenue growth was fueled by strong growth across the board. Its cloud services revenue was up 36% year-over-year, whereas the Tasers revenue grew 3.4% during the same time.

While the demand for its Tasers and body cameras remains robust, Axon Enterprise, Inc. (NASDAQ:AXON) has been leveraging artificial intelligence into its products. Starting the fourth quarter of 2024, the company announced its AI Era Plan, which includes a suite of products designed to enhance operational efficiency and investigative accuracy. Some notable features include AutoTranscribe, Draft One, Automatic License Plate Reading (ALPR), and Video Redaction.

Considering strong demand for its products and growth prospects arising from the launch of its AI features, management expects fourth-quarter revenue to be in the range of $560 million to $570 million, representing over 30% year-over-year growth at the midpoint. It is one of the best aerospace and defense stocks to buy right now.

Carillon Eagle Mid Cap Growth Fund stated the following regarding Axon Enterprise, Inc. (NASDAQ:AXON) in its Q3 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.”