We recently published a list of Jim Cramer and Analysts Like These 10 Stocks. In this article, we are going to take a look at where Axon Enterprise, Inc. (NASDAQ:AXON) stands against other stocks that Jim Cramer and analysts like.
On Thursday, Jim Cramer, the host of Mad Money, shared his thoughts on the current state of the stock market, explaining that until things become more balanced, we are likely to continue experiencing what he referred to as the “Walmart White House” scenario. In this environment, he explained, there are consistently lower prices for the Dow Jones, the S&P, and, more “savagely”, the Nasdaq 100.
“Let’s say you believe that the stock market is a good proxy for the state of a country. It’s not perfect, but it certainly reflects how investors feel about America and its future trajectory. But judging by the averages, maybe we should be embarrassed or even mortified because we’re doing so much worse than similar countries, including countries that we’d written off years ago.”
READ ALSO: Jim Cramer Looked At These 11 Stocks Recently and 10 Stocks on Jim Cramer’s Radar
The answer, according to Cramer, lies in the fact that several European nations are faring better at this moment because these countries have central banks that have been consistently lowering interest rates in an effort to stimulate demand. On top of that, Cramer emphasized that individual European countries are taking proactive steps to jumpstart their economies.
“Now, we all know what’s keeping our stock market down. It’s being sacrificed on the altar of uncertainty and confusion about punishing our trading partners for allowing illegal immigration and fentanyl smuggling, in fairness, and also of course, tariffs.”
He reminded viewers that President Donald Trump campaigned on border security, not on boosting stock prices, so in that sense, he is following through on his promises. However, Cramer expressed frustration with how chaotic and difficult to comprehend the current policy landscape seems.
Many people, Cramer noted, believe that the market will not improve until the Dow sees a significant drop of 10 to 15%. He has been attempting to guide viewers through this difficult time, but he also questioned how much longer the disparity between the U.S. market and those of its allies can persist before it becomes too significant to ignore.
“I think we’d be in better shape if Trump rolled out the tariffs more gradually with a clear trajectory of where we’re headed rather than these endless intermittent volleys of Katyusha rockets.”
Our Methodology
For this article, we compiled a list of 73 stocks that Cramer was bullish on during episodes of Mad Money aired in January. We narrowed the list to 10 stocks that were most favored by analysts. We listed the stocks in ascending order of their average analyst price target upside as of March 6. We also mentioned the hedge fund sentiment around each stock, which was taken from Insider Monkey’s Q4 database of over 1,000 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A technician in a white coat testing an in-car system on a modern military vehicle.
Axon Enterprise, Inc. (NASDAQ:AXON)
Average Price Target Upside: 38.21%
Number of Hedge Fund Holders: 64
On our list of stocks that Cramer and analysts like, Axon Enterprise, Inc. (NASDAQ:AXON) takes the 6th spot, and here’s what Cramer said about the company:
“Finally, there’s Axon, the body cam and taser company that owns the software as a service model for the local criminal justice system. I wish I had specifics about which jurisdictions are taking their package, but the growth continues to be shockingly strong both here and now overseas.
Maybe there aren’t enough analogs, but I always feel like Axon doesn’t get the attention it deserves from the analysts. I’ve liked it since it was Taser, TASR, and I like it even more even as the stock was up 130% last year, it needs a split to keep rolling.”
Axon (NASDAQ:AXON) is a company focused on creating TASER devices and providing hardware and cloud-based software solutions to support law enforcement in collecting, storing, managing, and analyzing digital evidence. On February 27, Barclays increased its price target on AXON stock to $726 from $585 and kept an Overweight rating on the stock after the Q4 report.
The analyst highlighted that Axon (NASDAQ:AXON) achieved its third consecutive year of over 30% sales growth. Additionally, the firm noted that T10 orders are continuing to surpass T7 orders, and 10 artificial intelligence Era Plan deals were finalized in Q4.
Overall, AXON ranks 6th on our list of stocks that Jim Cramer and analysts like. While we acknowledge the potential of AXON as an investment, 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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Disclosure: None. This article is originally published at Insider Monkey.
