Jim Cramer’s Best Performers List: Top 10 Picks

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

Number of Hedge Fund Holders: 36

Axon Enterprise, Inc. (NASDAQ:AXON) is engaged in the development, manufacturing, and sale of conducted energy devices (CEDs) under the TASER brand. The company operates through two main segments, Software and Sensors, and TASER.

It offers a comprehensive range of products that includes various Taser models, such as Taser 10 and Taser 7, as well as camera systems like Axon Body and Axon Fleet. Its software solutions encompass Axon Records and Evidence, supplemented by mobile applications, training services, and hardware extended warranties.

Cramer mentioned the company and said:

“Axon stock has been red hot for ages so it’s no surprise at all that it rallied another 35.8% in the third quarter. [It] seems strange that we don’t talk about this stock more  but it’s very much part of the broadening of the winners column.”

In August, Axon Enterprise (NASDAQ:AXON) reported a significant increase in quarterly revenue, up 35% compared to the previous year. The growth was largely driven by a remarkable 47% rise in cloud sales, along with a 28% increase in Taser revenue.

The quarter marked an important achievement for the company, as cloud revenue reached $195 million, nearly matching the $197 million generated from hardware sales. The company serves customers across all 50 states in the U.S. and operates in 90 countries, with Axon Cloud now housing over 2 billion law enforcement evidence files.

The extensive cloud infrastructure is becoming essential for local, state, federal, and international public safety agencies, whether for evidence collection or analysis. The profitability of the cloud business adds another layer of appeal, as it recorded a gross margin of 72.4% for the quarter.

By the end of the reporting period, Axon Enterprise (NASDAQ:AXON) had secured $7.3 billion in future contracted revenue, a substantial increase from $5.2 billion the previous year.