Jim Cramer Discussed 10 Stocks That Can Do Well in December

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

Number of Hedge Fund Holders: 46

Cramer called Axon Enterprise, Inc. (NASDAQ:AXON) a “definitive Trump stock” because of the notion that law enforcement will benefit from the new administration’s support.

“Second is Axon… that’s the company formerly known as TASER a long time ago. I don’t call it that because it obscures all the unbelievable work they’re doing to rationalize police stations, make things easier for law enforcement and the justice system. Axon had three things happen in November. They reported a much better-than-expected quarter, I mean much. They rolled out a new edition of their software, including valuable AI that saves a huge amount of time and of course, money. And this is a definitive Trump stock because there’s a widespread belief that local law enforcement will get more money from Washington with the GOP trifecta.”

Axon (NASDAQ:AXON) develops and sells conducted energy devices under the TASER brand and provides hardware and cloud-based software solutions to help law enforcement capture, store, manage, and analyze video and digital evidence. It delivered solid results for the third quarter, with quarterly revenue reaching $544 million, a 32% increase compared to the previous year, surpassing expectations.

This growth was fueled by strong performance across all product segments. The demand for its latest TASER and body camera products remained robust, contributing to growth in both TASER and Sensors & Other revenue. The company reported net income of $67 million, or $0.86 per diluted share, resulting in a net income margin of 12.3%. Additionally, adjusted EBITDA came in at $145 million, a 54% year-over-year increase, representing a margin of 26.7%, driven by higher revenue and improved operating efficiency.

Rick Smith, Founder and CEO, highlighted the potential for legislation addressing drone-related challenges, prompting the company to shift focus toward drone technology. Axon (NASDAQ:AXON) made significant progress in expanding its capabilities by acquiring Dedrone in Q3. Dedrone is recognized as the global leader in airspace awareness and security, and its smart airspace security technology integrates with the company’s public safety platform. This acquisition allows Axon to advance drone-based public safety programs, such as Drone as First Responder (DFR), to protect against unauthorized drone activity.