Goldman Sachs: Axon Enterprise (AXON) Is A Top Growth Investor Stock

Insider Monkey11-22 19:13

We recently made a list of Goldman Sachs’ Top Growth Investors: 34 Stocks With The Highest Investment For Growth. In this piece, we will look at where Axon Enterprise, Inc. (NASDAQ:AXON) ranks on the ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2485125627?lang=en_US&edition=fundamental","thumbnail":"https://s.yimg.com/uu/api/res/1.2/HsqCx.aBINlyKSHFk3TsUg--~B/aD04MTY7dz0xNDU2O2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/insidermonkey.com/ca79f2be4f11bda7110fa86980186c6e","is_english":true,"pubTime":"2024-11-22 19:13","share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","id":"2485125627","market":"us","top_or_hot":-1,"title":"Goldman Sachs: Axon Enterprise (AXON) Is A Top Growth Investor Stock","media":"Insider Monkey","content":"<div>\n<p>We recently made a list of Goldman Sachs’ Top Growth Investors: 34 Stocks With The Highest Investment For Growth. In this piece, we will look at where Axon Enterprise, Inc. (NASDAQ:AXON) ranks on the ...</p>\n\n<a href=\"https://finance.yahoo.com/news/goldman-sachs-axon-enterprise-axon-111330059.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Goldman Sachs: Axon Enterprise (AXON) Is A Top Growth Investor Stock</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nGoldman Sachs: Axon Enterprise (AXON) Is A Top Growth Investor Stock\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-22 19:13 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/goldman-sachs-axon-enterprise-axon-111330059.html><strong>Insider Monkey</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>We recently made a list of Goldman Sachs’ Top Growth Investors: 34 Stocks With The Highest Investment For Growth. In this piece, we will look at where Axon Enterprise, Inc. (NASDAQ:AXON) ranks on the ...</p>\n\n<a href=\"https://finance.yahoo.com/news/goldman-sachs-axon-enterprise-axon-111330059.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"IE0034235188.USD","symbol_name":"PINEBRIDGE GLOBAL FOCUS EQUITY \"A\" (USD) ACC","start_time":0,"source_url":"https://finance.yahoo.com/news/goldman-sachs-axon-enterprise-axon-111330059.html","article_id":"2485125627","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/HsqCx.aBINlyKSHFk3TsUg--~B/aD04MTY7dz0xNDU2O2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/insidermonkey.com/ca79f2be4f11bda7110fa86980186c6e"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2485125627","pubTimestamp":1732274010,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"We recently made a list of Goldman Sachs’ Top Growth Investors: 34 Stocks With The Highest Investment For Growth. In this piece, we will look at where Axon Enterprise, Inc.  ranks on the list.GS points out that the equal-weight S&P tends to underperform the market weight index sharply before the trend reverses. It cites the market’s performance of the two indexes before the bubble’s ‘pop’ to point out that “the trough in 10-year relative underperformance of the equal-weight vs. cap-weight index occurred during the lead-up to the Dot Com bubble .” This saw the equal weight index lag the market weight index by four percentage points  at the trough or the bottom. After the bottom, the differential flipped and the","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"IE0034235188.USD":"PINEBRIDGE GLOBAL FOCUS EQUITY \"A\" (USD) ACC",".IXIC":"NASDAQ Composite","BK4585":"ETF&股票定投概念","TQQQ":"纳指三倍做多ETF","BK4533":"AQR资本管理(全球第二大对冲基金)","LU1668664300.SGD":"Blackrock World Financials A2 SGD-H","LU2237443895.HKD":"abrdn SICAV I -  GLOBAL DYNAMIC DIVIDEND \"A\" (HKD) ACC","IE0004086264.USD":"BNY MELLON GLOBAL OPPORTUNITIES \"A\" (USD) ACC","IE0004091025.USD":"BNY MELLON GLOBAL OPPORTUNITIES \"B\" (USD) ACC","QID":"纳指两倍做空ETF","BK4588":"碎股","BK4550":"红杉资本持仓","LU2237443382.USD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A MIncA USD","LU1791807156.HKD":"BGF WORLD FINANCIALS \"A2\" (HKDHDG) ACC","IE00B19Z3581.USD":"Legg Mason ClearBridge - Value A Acc USD","BK4552":"Archegos爆仓风波概念","AXON":"Axon Enterprise, Inc.","LU2237443549.SGD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A MIncA SGD-H","IE00B19Z3B42.SGD":"Legg Mason ClearBridge - Value A Acc SGD","LU2237443465.HKD":"abrdn SICAV I -  GLOBAL DYNAMIC DIVIDEND \"A\" (HKD) INC","LU2237443622.USD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A Acc USD","LU0107464264.USD":"abrdn SICAV I - GLOBAL INNOVATION EQUITY \"A\" (USD) ACC","LU2237443978.SGD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A Acc SGD-H","IE00BSNM7G36.USD":"NEUBERGER BERMAN SYSTEMATIC GLOBAL SUSTAINABLE VALUE \"A\" (USD) ACC","BK4504":"桥水持仓","IE00BFXG1179.USD":"BNY MELLON U.S. EQUITY INCOME \"B\" (USD) INC","SG9999000418.SGD":"Aberdeen Standard Global Technology SGD","LU1169589451.USD":"ALLSPRING (LUX)  U.S. SELECT EQUITY \"A\" (USD) ACC","SQQQ":"纳指三倍做空ETF","LU2237438978.USD":"Amundi Funds US Pioneer A2 (C) USD","QLD":"纳指两倍做多ETF","BK4548":"巴美列捷福持仓","BK4127":"投资银行业与经纪业","LU0106831901.USD":"贝莱德世界金融基金A2","PSQ":"纳指反向ETF","LU1169590202.USD":"ALLSPRING (LUX)  U.S. SELECT EQUITY \"I\" (USD) ACC","BK4516":"特朗普概念","BK4187":"航天航空与国防","IE0002270589.USD":"LEGG MASON CLEARBRIDGE VALUE \"A\" (USD) INC"},"translate_title":"高盛：Axon Enterprise(AXON)是顶级成长型投资者股票","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AXON":1,".IXIC":0.9,"TQQQ":0.6,"PSQ":0.6,"QID":0.6,"QLD":0.6,"SQQQ":0.6,"MNQmain":0.6,"NQmain":0.6},"content_text":"We recently made a list of Goldman Sachs’ Top Growth Investors: 34 Stocks With The Highest Investment For Growth. In this piece, we will look at where Axon Enterprise, Inc. (NASDAQ:AXON) ranks on the list.\nWith the 2024 US Presidential Election having come to a close, Wall Street can now focus on the future of artificial intelligence, the Federal Reserve’s interest rate cut cycle, and an economy with lower inflation. As was the case during the coronavirus pandemic when historically low interest rates propelled markets to new highs only to come crashing when rates were hiked in 2022, the shifts that are currently taking place should also affect investors for the next couple of years at the very least.\nNaturally, this merits a look at what professional analysts are projecting about the future. On this front, investment bank Goldman Sachs recently updated its long-term forecasts for the US stock market. In a research report titled ‘Global Strategy Paper No. 71,  the bank outlined that the upgrade is necessary due to market concentration. This ‘concentration’ refers to roaring investor interest in large and mega-cap stocks primarily due to enthusiasm surrounding artificial intelligence.\nSince the biggest technology companies are also the heaviest investors in AI, market returns have also focused on them. As an illustration, consider the performance of the flagship S&P index which is up 30.64% over the past twelve months. Now, consider the performances of Wall Street’s top AI GPU stock, the software company behind Windows, the social networking giant that owns Facebook, Jeff Bezos’ eCommerce company, and the world’s leading search engine provider. Their shares have gained roughly 192.21%, 12.66%, 69.01%, 42.44%, and 27.63% over the same period. Consequently, most mega-cap stocks have driven the market in returns.\nAs per Goldman, this bifurcation implies that the equal-weight flagship S&P index is likely to outperform the market cap-weighted index “by an annualized 200 bp-800 bp” over the next decade, or between 2024 and 2034. To build its argument, the bank cites historical data which also covers the dotcom boom of the late 1990s and the early 2000s. This bubble is key in understanding today’s market, as it does share some characteristics with the surge in artificial intelligence stocks following OpenAI’s release of ChatGPT and Jensen Huang’s prediction of a trillion dollars of compute capacity waiting for an upgrade.\nGS points out that the equal-weight S&P tends to underperform the market weight index sharply before the trend reverses. It cites the market’s performance of the two indexes before the bubble’s ‘pop’ to point out that “the trough in 10-year relative underperformance of the equal-weight vs. cap-weight index occurred during the lead-up to the Dot Com bubble (1990-2000).” This saw the equal weight index lag the market weight index by four percentage points (pp) at the trough or the bottom. After the bottom, the differential flipped and the equal weight index led its counterpart by close to seven points (pp). As per Goldman, the four-point shortfall “has been matched during the past decade (2014-2024E) as the aggregate index has been powered by a few mega-cap Tech stocks and AI euphoria.”\nLinking historical performance trends with investor concentration in mega caps and AI stocks, the bank shares that this “extreme level of market concentration (99th percentile) suggests the magnitude of equal-weight outperformance over the next decade should also be stronger than average.” Just how strong can this be? Well GS outlines that the equal weight index can outperform the market weighed index by 8 percentage points. On the flip side, since this is the most bullish forecast, the bank notes that if equal weight index performance reverts to its historical mean over the past 50 years, then “this would imply a less dramatic 2 pp of annualized outperformance.”\nWhile stock market math is all good, other factors also drive its performance. November has seen headlines talk about nothing else but the Presidential Election. Post-election stock performance saw some firms, like Elon Musk’s car company record stunning gains. Goldman’s Shawn Tuteja, who works with exchange-traded funds (ETFs) and baskets, shared some insights about what sectors performed well after the election and whether this outperformance will continue. In a podcast, he outlined that “the biggest themes that we saw play out the day after the election on Wednesday were regional banks and banks getting bought.” He shared that “any sectors that were linked to de-regulation, benefited.” These include “energy, traditional energy versus renewables” with the former up by 4% while the latter losing roughly 10%.\nTuteja added that “the resilience and strength of US tech over the past couple of days post the election” was a standout from the market’s post-election performance in 2016. As to what lies in the future, the Goldman analyst is optimistic. He believes that “what I would expect to come over the next couple of weeks is a continuation on the factor level of the themes that worked post the election.” This is because “it takes time for money to be deployed and for themes to play out.” According to him, in 2016, “regional banks and big banks rallied for months after the election and they outperformed all of the other sectors in the market.” Additionally, while the broader markets might have calmed at a surface level, Tuteja points out that “under the surface, those sector moves become a lot more violent as correlations in the market break, as people start picking winners and losers in the new government regime’s policies.”\nFor some bank stocks, you can check out 10 Best Local Bank Stocks To Invest In Now and 10 Best Diversified Bank Stocks to Buy Now.\nWithin this dynamic environment that will see the Fed continue to tailor its interest rate decisions to the economy and companies adjust to a looser monetary policy, firms might also increase their cash spending. In a note covering spending, Goldman shared that the benchmark S&P index firms can increase their spending to 11% next year from 2024’s 8%. This will be driven by rising profits, as the bank believes that earnings “growth alone can explain 40% of next quarter’s cash spending growth.”\nJust like it expects equities performance to broaden in the future, the bank also posits that the “typical stock should close the earnings growth gap with the mega-cap tech stocks.” Finally, on the topic of mergers and acquisitions, which slowed down in the wake of historic interest rates, GS is optimistic. It expects “cash M&A will rebound by 20% in 2025,” but cautions that “the potential for tariffs, regulatory changes, and corporate tax reform could meaningfully shift these forecasts.”\nOur Methodology\nTo make our list of Goldman Sachs’ top growth investment stocks, we used the bank’s recent list of stocks and picked out those with a growth investment ratio of 70% or higher. This ratio is defined as the ratio of capital expenditure and R&D spending excluding depreciation over a firm’s cash flow from operations.\nFor these stocks, we also mentioned the number of hedge fund investors. 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 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).\n A technician in a white coat testing an in-car system on a modern military vehicle. \nAxon Enterprise, Inc. (NASDAQ:AXON)\nGrowth Investment Ratio: 172%\nNumber of Hedge Fund Holders: 36\nAxon Enterprise, Inc. (NASDAQ:AXON) is a non-lethal defense equipment provider and software company. The firm primarily makes and sells TASER guns that are used by law enforcement officials to subdue suspects and civilians for defense purposes. It also provides cartridges used in TASER guns and software products to law enforcement agencies for data analysis. As a result, Axon Enterprise, Inc. (NASDAQ:AXON) has a diversified income statement that relies on price-favored hardware sales and margin-heavy software. As of H1 2024, 59% of the firm’s revenue came from hardware sales while the remainder was through software. Within hardware, Axon Enterprise, Inc. (NASDAQ:AXON) also benefits from recurring sales through its cartridges. The law enforcement exposure of its business also hedges against economic cycles, and it requires Axon Enterprise, Inc. (NASDAQ:AXON) to stay on top of its game by launching upgrades to ensure rivals cannot steal market share. A catalyst for the stock could be the incoming Trump Administration’s greater focus on border control to drive the demand for Axon Enterprise, Inc. (NASDAQ:AXON)’s products.\nBaron Funds mentioned Axon Enterprise, Inc. (NASDAQ:AXON) in its Q3 2024 investor letter. Here is what the firm said:\n\n“Axon Enterprise, Inc. (NASDAQ:AXON) is the leading provider of tasers, body cameras, software, and other solutions for law enforcement. Shares rose following an exceptionally strong second quarter earnings report, highlighted by revenue growth of over 25% for the 10th straight quarter. This was led by nearly 50% growth in Axon’s software business. Axon introduced Draft One software for law enforcement officers, which leverages generative AI and body-worn camera audio to produce high-quality draft report narratives in seconds, freeing up 20% to 25% of an officer’s day. This product showcases the many potential generative AI use cases in Axon’s business. International bookings were up 100%, driven in part by growing interest in Draft One and the Taser 10 product. Run by a visionary founder with a best-in-class team, the company is continually pushing new and innovative products in the pursuit of becoming the de-facto public safety ecosystem. We believe Axon will become a much larger company over time.”\n\nOverall, AXON ranks 9th on our list of Goldman Sachs' top growth investors. 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.\nREAD NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock\nDisclosure: None. This article is originally published at Insider Monkey.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.2","shortVersion":"4.29.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2485125627"}