One stock that seems to be sweeping away all macro concerns in 2023, and has been for years, is Taser maker Axon Enterprise. Shares of Exxon are up nearly 30% this year, putting them on track for their eighth consecutive annual gain. Last year, the stock climbed 5.7% — while the S&P 500 fell 19%. The stock showed its resilience last week, posting a small gain despite market volatility from the global banking crisis. Even more impressive, the stock posted losses just twice in the past 15 years. This remarkable streak comes as the company expands beyond its flagship Taser weapon into a suite of offerings including body cameras. This comes at the same time as public accountability of police officers gathers pace. “What they’ve essentially done is brought a single product, Taser, into a multiproduct ecosystem family,” said Needham senior analyst Joshua Reilly. Exxon Mountain 2013-03-15 Exxon Enterprise Shares Over the Last 10 Years The company has a confident outlook for its business, last month it forecast more than $2 billion in revenue in 2025, or annual average revenue growth was more than 20%. And, Reilly expects Taser’s latest update itself to trigger a new upgrade cycle — similar to what Apple saw when it released a new iPhone. “It’s a similar dynamic,” Reilly said. “This is going to help them both replace the legacy model of Taser that is in the field today, but also expand the opportunity for Taser domestically and internationally.” Ecosystem expansion Axon has been expanding its business over the years as it builds an increasingly sophisticated suite of products for law enforcement that includes body cameras, in-vehicle cameras and cloud software solutions. While other smaller companies offer these products, Exxon is chipping away at market share as it leverages its relationships with law enforcement. The Taser maker has customer relationships with about 17,000 of the 18,000 US law enforcement agencies, according to a note this month from Goldman Sachs. The firm also has 1,200 dedicated sales representatives for the largest agencies, representing 70% of law enforcement patrol officers. Needham’s Reilly said that body camera is also “extremely important” for Exxon amid more calls for transparency in law enforcement departments, especially as it helps contribute high-quality footage around an incident. Exxon has rapidly expanded sales. Over the past five years, the company’s net sales are projected to grow to $1.189 billion in 2022, up from $343.8 million in 2017. At the end of 2023, those sales are expected to grow to at least $1.43 billion, according to Exxon. To be sure, a slowdown in the product cycle down the road could hurt the stock. However, Needham’s Reilly said the firm is focusing on reducing its stock-based compensation and increasing the business’s free cash flow. Both are attractive moves for investors. And, Goldman Sachs analyst Michael Ng, who initiated coverage of the stock this month with a buy rating, says shares are up more than 20% since Friday’s close. The latest version of the public accountability teaser launched in January is purported to have more security features and be more effective. Among other changes, the Taser 10 has a lower voltage than its predecessor. This allows users to aim probes individually instead of having two targets on one person at once. In some countries, especially countries where no guns are available to the public, those changes will allow officers to use handguns instead of handcuffs as their primary weapon, according to a FactSet transcript from Axon Enterprise CEO Patrick Smith in the firm’s fourth quarter. I might be tempted to go to Taser. conference call earlier this month. “This may be the first version of the Taser where in some countries officers in some countries experiment with officers carrying only a taser — and a handgun and not a taser,” Needham’s Reilly said. “Making the Taser safer and a more effective replacement for the gun is extremely important,” Reilly said. “Because if officers are confident that the Taser will bring you down — which I think they’ll have more confidence with the Taser 10 than any Taser in history — that’s going to lead to fewer overall police shootings at the end of the day, ” They said.
Orignal Post From: Shares of Taser maker AXON are up for the eighth-straight year
