Goldman Sachs Defense Stocks: Top 12 Stock Picks

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

Stake Value as of Q4 2024: $180,226,886

Axon Enterprise, Inc. (NASDAQ:AXON) manufactures weapons and technology for law enforcement agencies, the military, and civilian use. The company integrates cloud software solutions and hardware devices to help enable modern policing, defense, and security.

The stock has delivered a phenomenal performance over the last five years, with a staggering EPS growth of 218%. Investor sentiment in the company continues to strengthen because of its impressive financials, investments in new products, and an expanding software business.

According to Insider Monkey’s database for Q4 2024, 64 hedge funds held a stake in Axon Enterprise, Inc. (NASDAQ:AXON), improving from 46 at the end of the third quarter. Wall Street analysts are also bullish on the stock, with a consensus Strong Buy rating. Jim Cramer recently provided a positive overview of the stock, citing its transformation into a dominant SaaS provider for police departments:

“Remember Axon? We had Patrick Smith on. That’s, well I got to tell you, this used to be a taser and people still think it’s taser. It’s a decent business but not a big one. What this company really is now, is the dominant software-as-a-service system for law enforcement in cities all over America. Its body cam system is the gold standard. Its AI work gets rid of the drudgery of filling out and reports gives police officers more time to do their actual jobs. The best? The bad guys plead guilty because it’s all on tape.”

Axon Enterprise, Inc. (NASDAQ:AXON) reported a revenue of $2.1 billion for fiscal 2024, growing 33% from last year, and nearly double from the figure two years ago. The company also marked 12 successive quarters of 25% or above revenue growth. Annual net income stood at $377 million, supporting the non-GAAP net income of $466 million.

Axon Enterprise, Inc. (NASDAQ:AXON) is among the top defense picks from the Goldman Sachs stock portfolio, with the investment banking firm having holdings of over $180 million in the company.