Konica Minolta (OTC:KNCAY) Stock, Quote.Headers.trade-ideas

KONICA MINOLTA HOLDI

Konica Minolta Inc is a Japanese equipment and material manufacturer that operates globally, generating most of its revenue in Europe, North America and Japan. The company is divided into the office, professional print, healthcare, and the industrial segments. The office business (which includes office tools such as printers as well as IT solutions) is the contributor to revenue, followed by the professional print business (which includes commercial and industrial print systems). The industrial business focuses on development, manufacture, and sales of performance materials and optical systems for industrial use. The healthcare segment provides X-ray diagnostics systems, ultrasound diagnostics tools, and medical IT services.

KONICA MINOLTA UNSP/ADR by Konica Minolta Inc.

Konica Minolta Inc

With legislative support, increased construction investments, and technological advancements, the industrial sector is witnessing rapid growth. Hence, it could be wise to invest in Siemens (SIEGY), Installed Building Products (IBP), and Konica Minolta (KNCAY), all of which are making significant market impacts this month. Keep reading… The industrial sector is flourishing owing to favorable legislation, rising construction expenditures, and innovation-promoting technical advancements. Thus, it seems wise to invest in Siemens Aktiengesellschaft (<a href="https://stocknews.com/stock/SIEGY/">SIEGY</a>), Installed Building Products, Inc. (<a href="https://stocknews.com/stock/IBP/">IBP</a>), and Konica Minolta, Inc. (<a href="https://stocknews.com/stock/KNCAY/">KNCAY</a>), which are poised for robust growth.
Let's understand this in more detail.
With the broad adoption of smart factories and advanced technology, the industrial sector is positioned for significant breakthroughs. Shop floors and operations are being revolutionized by these revolutionary facilities while <a href="https://gembah.com/blog/manufacturing-trends-2024/">predictive maintenance</a> and digital twin technology are enabling better decision-making among manufacturers.
Industrial productivity is also being increased by other <a href="https://explodingtopics.com/blog/manufacturing-trends">technical innovations</a> such as Artificial Intelligence (AI), machine learning, and advanced analytics. Various domains use AI-driven decision-making, including inventory management, manufacturing line evaluations, supply chain management, and quality inspection.
Concerns about economies of scale have also given way to a new era of personalization, which has been ushered in by the inventive trend of <a href="https://www.forbes.com/sites/bernardmarr/2022/01/25/the-10-biggest-future-trends-in-manufacturing/?sh=55033b644d56">3D printing</a>. This technology enables the manufacturing of customized items and stimulates innovation by enabling quick prototyping.
Furthermore, the Infrastructure Investment and Jobs Act (IIJA), the CHIPS and Science Act, and the Inflation Reduction Act (IRA) have all been major drivers of this year's notable progress in the U.S. manufacturing sector. Adopted in 2021 and 2022, these legislations have significantly accelerated industry advancement.
Construction spending has increased significantly in the manufacturing sector since these measures were put into effect. Spending on factory building increased to $201 billion annually as of July 2023, <a href="https://www2.deloitte.com/us/en/insights/industry/manufacturing/manufacturing-industry-outlook.html">a 70% increase</a> from the previous year. This spike lays a solid basis for the industry's further expansion in 2024.
That said, the AIA Consensus Construction Forecast Panel projects that non-residential building investment would increase by around 20% in 2023, reaching levels not seen since the Great Recession. Notably, spending on commercial buildings is expected to rise by 10%, while industrial construction is expected to <a href="https://kbcmgroup.com/2024-construction-outlook/">rise by 50%</a>.
In light of these encouraging trends, let us dive into the fundamentals of these three industrial stocks.
Siemens Aktiengesellschaft (<a href="https://stocknews.com/stock/SIEGY/">SIEGY</a>)
Headquartered in Munich, Germany, SIEGY is a technology powerhouse that concentrates on automation and digitalization. The company is organized into five segments: Digital Industries; Smart Infrastructure; Mobility; Siemens Healthineers; and Siemens Financial Services.
On November 30, Siemens Mobility and European Locomotive Leasing Group (ELL) based in Vienna and Munich, forged an alliance by signing a framework agreement to deliver up to 200 additional Vectron locomotives. This fourth agreement cements the enduring and formidable partnership between ELL and Siemens Mobility.
Furthermore, with the potential to expand the Vectron fleet to over 400 locomotives in the medium term, this accord not only solidifies Siemens Mobility's market presence but also showcases its pivotal role in shaping Europe's rail infrastructure landscape.
On November 27, Siemens Smart Infrastructure announced a collaboration with Copperleaf, a Canadian provider of asset investment planning software. The partnership, integrated into the Siemens Xcelerator platform, aims to optimize investment and technical grid planning for customers.
The collaboration would position Siemens Smart Infrastructure to leverage enhanced capabilities to meet customer needs effectively. It would aid SIEGY in driving financial success through innovative solutions in the realm of smart infrastructure and digital business platforms.
For the fourth quarter that ended September 30, 2023, SIEGY's revenue increased 4% year-over-year to €$21.39 billion ($23.38 billion). Its <a href="https://www.investopedia.com/terms/g/grossprofit.asp">gross profit</a> grew 7.3% from the year-ago value to €$8.24 billion ($9 billion).
Also, the company's cash inflow from operating activities from continuing operations rose 32.7% from the prior year's quarter to $5.47 billion ($5.97 billion). As of September 30, 2023, the company's current assets amounted to €$60.64 billion ($66.27 billion), compared to €$58.83 billion ($64.29 billion) as of September 30, 2022.
The consensus revenue estimate of $89.08 billion for the fiscal year ending September 2024 reflects a 5.6% year-over-year improvement. Likewise, the consensus EPS estimate of $7.68 for the ongoing year exhibits a 35.6% rise from the prior year. Also, the company surpassed the consensus EPS estimates in three of the trailing four quarters.
Shares of SIEGY have gained 27.9% over the past month to close the last trading session at $84.00.
SIEGY's strong fundamentals are reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. The stock has an overall rating of A, equating to a Strong Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.
SIEGY has a B grade for Value and Stability. It has ranked #2 out of 35 stocks within the A-rated <a href="https://stocknews.com/category/industrial-manufacturing/">Industrial - Manufacturing</a> industry.
In addition to the POWR Ratings I've just highlighted, you can see SIEGY's ratings for Growth, Momentum, Quality, and Sentiment <a href="https://stocknews.com/stock/SIEGY/">here</a>.
Installed Building Products, Inc. (<a href="https://stocknews.com/stock/IBP/">IBP</a>)
IBP specializes in installing insulation, waterproofing, fire-stopping, fireproofing, garage doors, rain gutters, window blinds, shower doors, closet shelving, mirrors, and related products. It caters to homebuilders, multi-family and commercial construction firms, individual homeowners, and repair and remodeling contractors.
On August 28, IBP unveiled its acquisition of Interior 2000 Products, LLC, a company specializing in installing shower, shelving, mirror products, and fireplaces in residential and commercial construction projects in the greater Richmond, Virginia market.
This move would help IBP expand its presence in the lucrative Richmond market. Also, with Interior 2000 contributing nearly $6 million in annual revenue, the acquisition should broaden IBP's service offerings and reinforce its position as a key player in the construction industry.
On August 6, IBP successfully finalized the acquisition of R-Pro Select, LLC. R-Pro specializes in installing fiberglass, spray foam, cellulose insulation, and fireplaces for residential customers in Asheville, Hendersonville, and surrounding western North Carolina communities.
The acquisition significantly strengthens IBP's footprint in western North Carolina, aligning with its growth strategy. With over $55 million in annual revenue from acquisitions, IBP continues to expand, maintaining a robust pipeline of opportunities across various geographies, products, and end markets.
For the third quarter that ended September 30, 2023, IBP's adjusted gross profit increased 9.4% year-over-year to $242.35 million. Its adjusted EBITDA rose 8.6% from the year-ago value to $130.50 million.
In addition, the company's adjusted net income and adjusted net income per share grew 10% and 11.2% from the prior year's period to $78.87 million and $2.79, respectively.
Analysts expect IBP's revenue to grow 2.6% year-over-year to $2.74 billion for the fiscal year ending December 2023. Similarly, the company's EPS for the current year is estimated to come in at $9.94, indicating an 11.1% year-over-year improvement. Moreover, IBP topped the consensus EPS estimates in all four trailing quarters.
The stock has gained 36.8% over the past month and 78.7% over the past year, closing the last trading session at $150.51.
IBP's positive prospects are reflected in its POWR Ratings. The stock has an overall rating of B, which translates to Buy in our proprietary rating system.
IBP has an A grade for Quality and a B for Momentum. It has ranked #16 out of 48 stocks in the A-rated <a href="https://stocknews.com/category/industrial-building-materials/">Industrial - Building Materials</a> industry.
<a href="https://stocknews.com/stock/IBP/">Click here</a> to access the additional IBP ratings (Growth, Value, Stability, and Sentiment). 
Konica Minolta, Inc. (<a href="https://stocknews.com/stock/KNCAY/">KNCAY</a>)
Based in Tokyo, Japan, KNCAY engages in the digital workplace, professional print, healthcare, and industrial sectors. It develops, manufactures, and sells multifunctional peripherals, digital printing systems, and associated consumables. Additionally, the company provides comprehensive IT and printing solutions and services.
On October 26, KNCAY reported a significant development in its optical components business, announcing an agreement to transfer 80% of the shares of two Chinese manufacturing subsidiaries to Guangzhou Luxvisions Innovation Technology Limited. These subsidiaries possess both development and sales functions.
The alliance would optimize KNCAY's unit business structure in the growing mobility field and facilitate the provision of new value tailored to evolving customer needs. This strategic move aligns with KNCAY's business plan, which focuses on transforming itself into a highly profitable business and ensuring sustained financial benefits.
On October 17, KNCAY and Dentsu Inc. revealed a joint research agreement to provide consulting services to customer companies, fostering innovation in the "Bio × IT" domain. The partnership aims to develop businesses, services, and technologies in health, medical care, and the environment globally.
The focus on "Bio manufacturing," utilizing biological materials, signifies a significant leap in medical technologies, integrating Information Technology (IT) and communication means. This could allow KNCAY to position itself at the forefront of driving transformative innovation and addressing critical challenges in the realms of health, medical care, and environmental sustainability.
KNCAY's revenue increased 4.1% year-over-year to ¥552.76 billion ($3.74 billion) for the six months that ended September 30, 2023. Its gross profit grew 5% from the year-ago value to ¥237.24 billion ($1.61 billion).
Additionally, the company's cash inflow from operating activities came in at ¥32.03 billion ($216.96 billion), compared to ¥7.82 billion ($53 million) in the previous year's period.
The consensus revenue estimate of $7.78 billion for the fiscal year ending March 2024 reflects a 126.4% year-over-year improvement. Similarly, the consensus revenue estimate of $7.88 billion for the next fiscal year (ending March 2025) indicates a 1.3% growth from the previous year. Also, the company surpassed the consensus revenue estimates in three of the trailing four quarters.
KNCAY has gained 11.7% over the past month, closing the last trading session at $6.11.
KNCAY's sound outlook is apparent in its POWR Ratings. The stock has an overall rating of B, which translates to Buy in our proprietary rating system.
KNCAY has an A grade for Value and a B for Momentum, Quality, and Stability. It has ranked #13 out of 91 stocks within the B-rated <a href="https://stocknews.com/category/industrial-equipment/">Industrial - Equipment</a> industry.
<a href="https://stocknews.com/stock/KNCAY/">Click here</a> to access additional KNCAY ratings for Growth and Sentiment.
What To Do Next?
43 year investment veteran, Steve Reitmeister, has just released his 2024 market outlook along with trading plan and top 11 picks for the year ahead.
<a href="https://report.stocknews.com/sign-up/stock-market-outlook-2024/?formplacement=artbotad_smo24_rep">2024 Stock Market Outlook &gt;</a>  

<hr />
SIEGY shares were trading at $85.00 per share on Friday afternoon, up $1.00 (+1.19%). Year-to-date, SIEGY has gained 26.24%, versus a 21.51% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Aanchal Sugandh</h2> <img src='https:/wp-content/uploads/2022/12/Aanchal-Sugandh_Headshot.jpg' style="float:left; padding:5px;width:125px;">Aanchal's passion for financial markets drives her work as an investment analyst and journalist. She earned her bachelor's degree in finance and is pursuing the CFA program.

She is proficient at assessing the long-term prospects of stocks with her fundamental analysis skills. Her goal is to help investors build portfolios with sustainable returns.<a href="https://stocknews.com/authors/?author=aanchal-sugandh">More...</a>The post <a href=https://stocknews.com/news/siegy-ibp-kncay-top-3-industrial-stock-buys-illuminating-the-market-this-month/>Top 3 Industrial Stock Buys Illuminating the Market This Month</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

Top 3 Industrial Stock Buys Illuminating the Market This Month

With legislative support, increased construction investments, and technological advancements, the industrial sector is witnessing rapid growth. Hence, it could be wise to invest in Siemens (SIEGY), Installed Building Products (IBP), and Konica Minolta (KNCAY), all of which are making significant market impacts this month. Keep reading… The industrial sector is flourishing owing to favorable legislation, rising construction expenditures, and innovation-promoting technical advancements. Thus, it seems wise to invest in Siemens Aktiengesellschaft (<a href="https://stocknews.com/stock/SIEGY/">SIEGY</a>), Installed Building Products, Inc. (<a href="https://stocknews.com/stock/IBP/">IBP</a>), and Konica Minolta, Inc. (<a href="https://stocknews.com/stock/KNCAY/">KNCAY</a>), which are poised for robust growth.
Let's understand this in more detail.
With the broad adoption of smart factories and advanced technology, the industrial sector is positioned for significant breakthroughs. Shop floors and operations are being revolutionized by these revolutionary facilities while <a href="https://gembah.com/blog/manufacturing-trends-2024/">predictive maintenance</a> and digital twin technology are enabling better decision-making among manufacturers.
Industrial productivity is also being increased by other <a href="https://explodingtopics.com/blog/manufacturing-trends">technical innovations</a> such as Artificial Intelligence (AI), machine learning, and advanced analytics. Various domains use AI-driven decision-making, including inventory management, manufacturing line evaluations, supply chain management, and quality inspection.
Concerns about economies of scale have also given way to a new era of personalization, which has been ushered in by the inventive trend of <a href="https://www.forbes.com/sites/bernardmarr/2022/01/25/the-10-biggest-future-trends-in-manufacturing/?sh=55033b644d56">3D printing</a>. This technology enables the manufacturing of customized items and stimulates innovation by enabling quick prototyping.
Furthermore, the Infrastructure Investment and Jobs Act (IIJA), the CHIPS and Science Act, and the Inflation Reduction Act (IRA) have all been major drivers of this year's notable progress in the U.S. manufacturing sector. Adopted in 2021 and 2022, these legislations have significantly accelerated industry advancement.
Construction spending has increased significantly in the manufacturing sector since these measures were put into effect. Spending on factory building increased to $201 billion annually as of July 2023, <a href="https://www2.deloitte.com/us/en/insights/industry/manufacturing/manufacturing-industry-outlook.html">a 70% increase</a> from the previous year. This spike lays a solid basis for the industry's further expansion in 2024.
That said, the AIA Consensus Construction Forecast Panel projects that non-residential building investment would increase by around 20% in 2023, reaching levels not seen since the Great Recession. Notably, spending on commercial buildings is expected to rise by 10%, while industrial construction is expected to <a href="https://kbcmgroup.com/2024-construction-outlook/">rise by 50%</a>.
In light of these encouraging trends, let us dive into the fundamentals of these three industrial stocks.
Siemens Aktiengesellschaft (<a href="https://stocknews.com/stock/SIEGY/">SIEGY</a>)
Headquartered in Munich, Germany, SIEGY is a technology powerhouse that concentrates on automation and digitalization. The company is organized into five segments: Digital Industries; Smart Infrastructure; Mobility; Siemens Healthineers; and Siemens Financial Services.
On November 30, Siemens Mobility and European Locomotive Leasing Group (ELL) based in Vienna and Munich, forged an alliance by signing a framework agreement to deliver up to 200 additional Vectron locomotives. This fourth agreement cements the enduring and formidable partnership between ELL and Siemens Mobility.
Furthermore, with the potential to expand the Vectron fleet to over 400 locomotives in the medium term, this accord not only solidifies Siemens Mobility's market presence but also showcases its pivotal role in shaping Europe's rail infrastructure landscape.
On November 27, Siemens Smart Infrastructure announced a collaboration with Copperleaf, a Canadian provider of asset investment planning software. The partnership, integrated into the Siemens Xcelerator platform, aims to optimize investment and technical grid planning for customers.
The collaboration would position Siemens Smart Infrastructure to leverage enhanced capabilities to meet customer needs effectively. It would aid SIEGY in driving financial success through innovative solutions in the realm of smart infrastructure and digital business platforms.
For the fourth quarter that ended September 30, 2023, SIEGY's revenue increased 4% year-over-year to €$21.39 billion ($23.38 billion). Its <a href="https://www.investopedia.com/terms/g/grossprofit.asp">gross profit</a> grew 7.3% from the year-ago value to €$8.24 billion ($9 billion).
Also, the company's cash inflow from operating activities from continuing operations rose 32.7% from the prior year's quarter to $5.47 billion ($5.97 billion). As of September 30, 2023, the company's current assets amounted to €$60.64 billion ($66.27 billion), compared to €$58.83 billion ($64.29 billion) as of September 30, 2022.
The consensus revenue estimate of $89.08 billion for the fiscal year ending September 2024 reflects a 5.6% year-over-year improvement. Likewise, the consensus EPS estimate of $7.68 for the ongoing year exhibits a 35.6% rise from the prior year. Also, the company surpassed the consensus EPS estimates in three of the trailing four quarters.
Shares of SIEGY have gained 27.9% over the past month to close the last trading session at $84.00.
SIEGY's strong fundamentals are reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. The stock has an overall rating of A, equating to a Strong Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.
SIEGY has a B grade for Value and Stability. It has ranked #2 out of 35 stocks within the A-rated <a href="https://stocknews.com/category/industrial-manufacturing/">Industrial - Manufacturing</a> industry.
In addition to the POWR Ratings I've just highlighted, you can see SIEGY's ratings for Growth, Momentum, Quality, and Sentiment <a href="https://stocknews.com/stock/SIEGY/">here</a>.
Installed Building Products, Inc. (<a href="https://stocknews.com/stock/IBP/">IBP</a>)
IBP specializes in installing insulation, waterproofing, fire-stopping, fireproofing, garage doors, rain gutters, window blinds, shower doors, closet shelving, mirrors, and related products. It caters to homebuilders, multi-family and commercial construction firms, individual homeowners, and repair and remodeling contractors.
On August 28, IBP unveiled its acquisition of Interior 2000 Products, LLC, a company specializing in installing shower, shelving, mirror products, and fireplaces in residential and commercial construction projects in the greater Richmond, Virginia market.
This move would help IBP expand its presence in the lucrative Richmond market. Also, with Interior 2000 contributing nearly $6 million in annual revenue, the acquisition should broaden IBP's service offerings and reinforce its position as a key player in the construction industry.
On August 6, IBP successfully finalized the acquisition of R-Pro Select, LLC. R-Pro specializes in installing fiberglass, spray foam, cellulose insulation, and fireplaces for residential customers in Asheville, Hendersonville, and surrounding western North Carolina communities.
The acquisition significantly strengthens IBP's footprint in western North Carolina, aligning with its growth strategy. With over $55 million in annual revenue from acquisitions, IBP continues to expand, maintaining a robust pipeline of opportunities across various geographies, products, and end markets.
For the third quarter that ended September 30, 2023, IBP's adjusted gross profit increased 9.4% year-over-year to $242.35 million. Its adjusted EBITDA rose 8.6% from the year-ago value to $130.50 million.
In addition, the company's adjusted net income and adjusted net income per share grew 10% and 11.2% from the prior year's period to $78.87 million and $2.79, respectively.
Analysts expect IBP's revenue to grow 2.6% year-over-year to $2.74 billion for the fiscal year ending December 2023. Similarly, the company's EPS for the current year is estimated to come in at $9.94, indicating an 11.1% year-over-year improvement. Moreover, IBP topped the consensus EPS estimates in all four trailing quarters.
The stock has gained 36.8% over the past month and 78.7% over the past year, closing the last trading session at $150.51.
IBP's positive prospects are reflected in its POWR Ratings. The stock has an overall rating of B, which translates to Buy in our proprietary rating system.
IBP has an A grade for Quality and a B for Momentum. It has ranked #16 out of 48 stocks in the A-rated <a href="https://stocknews.com/category/industrial-building-materials/">Industrial - Building Materials</a> industry.
<a href="https://stocknews.com/stock/IBP/">Click here</a> to access the additional IBP ratings (Growth, Value, Stability, and Sentiment). 
Konica Minolta, Inc. (<a href="https://stocknews.com/stock/KNCAY/">KNCAY</a>)
Based in Tokyo, Japan, KNCAY engages in the digital workplace, professional print, healthcare, and industrial sectors. It develops, manufactures, and sells multifunctional peripherals, digital printing systems, and associated consumables. Additionally, the company provides comprehensive IT and printing solutions and services.
On October 26, KNCAY reported a significant development in its optical components business, announcing an agreement to transfer 80% of the shares of two Chinese manufacturing subsidiaries to Guangzhou Luxvisions Innovation Technology Limited. These subsidiaries possess both development and sales functions.
The alliance would optimize KNCAY's unit business structure in the growing mobility field and facilitate the provision of new value tailored to evolving customer needs. This strategic move aligns with KNCAY's business plan, which focuses on transforming itself into a highly profitable business and ensuring sustained financial benefits.
On October 17, KNCAY and Dentsu Inc. revealed a joint research agreement to provide consulting services to customer companies, fostering innovation in the "Bio × IT" domain. The partnership aims to develop businesses, services, and technologies in health, medical care, and the environment globally.
The focus on "Bio manufacturing," utilizing biological materials, signifies a significant leap in medical technologies, integrating Information Technology (IT) and communication means. This could allow KNCAY to position itself at the forefront of driving transformative innovation and addressing critical challenges in the realms of health, medical care, and environmental sustainability.
KNCAY's revenue increased 4.1% year-over-year to ¥552.76 billion ($3.74 billion) for the six months that ended September 30, 2023. Its gross profit grew 5% from the year-ago value to ¥237.24 billion ($1.61 billion).
Additionally, the company's cash inflow from operating activities came in at ¥32.03 billion ($216.96 billion), compared to ¥7.82 billion ($53 million) in the previous year's period.
The consensus revenue estimate of $7.78 billion for the fiscal year ending March 2024 reflects a 126.4% year-over-year improvement. Similarly, the consensus revenue estimate of $7.88 billion for the next fiscal year (ending March 2025) indicates a 1.3% growth from the previous year. Also, the company surpassed the consensus revenue estimates in three of the trailing four quarters.
KNCAY has gained 11.7% over the past month, closing the last trading session at $6.11.
KNCAY's sound outlook is apparent in its POWR Ratings. The stock has an overall rating of B, which translates to Buy in our proprietary rating system.
KNCAY has an A grade for Value and a B for Momentum, Quality, and Stability. It has ranked #13 out of 91 stocks within the B-rated <a href="https://stocknews.com/category/industrial-equipment/">Industrial - Equipment</a> industry.
<a href="https://stocknews.com/stock/KNCAY/">Click here</a> to access additional KNCAY ratings for Growth and Sentiment.
What To Do Next?
43 year investment veteran, Steve Reitmeister, has just released his 2024 market outlook along with trading plan and top 11 picks for the year ahead.
<a href="https://report.stocknews.com/sign-up/stock-market-outlook-2024/?formplacement=artbotad_smo24_rep">2024 Stock Market Outlook &gt;</a>  

<hr />
SIEGY shares were trading at $85.00 per share on Friday afternoon, up $1.00 (+1.19%). Year-to-date, SIEGY has gained 26.24%, versus a 21.51% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Aanchal Sugandh</h2> <img src='https:/wp-content/uploads/2022/12/Aanchal-Sugandh_Headshot.jpg' style="float:left; padding:5px;width:125px;">Aanchal's passion for financial markets drives her work as an investment analyst and journalist. She earned her bachelor's degree in finance and is pursuing the CFA program.

She is proficient at assessing the long-term prospects of stocks with her fundamental analysis skills. Her goal is to help investors build portfolios with sustainable returns.<a href="https://stocknews.com/authors/?author=aanchal-sugandh">More...</a>The post <a href=https://stocknews.com/news/siegy-ibp-kncay-top-3-industrial-stock-buys-illuminating-the-market-this-month/>Top 3 Industrial Stocks Lighting Up the Market This Month</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

Top 3 Industrial Stocks Lighting Up the Market This Month

Favorable government initiatives, increasing use of technology, and rising investments in infrastructure are expected to bolster the industrial sector's growth. Therefore, it could be wise to buy fundamentally strong industrial stocks EnerSys (ENS), Konica Minolta (KNCAY), and Clearwater Paper (CLW). Read more… The focus on boosting domestic manufacturing, a surge in economic activity, rising infrastructure expenditure, greater use of technology, supportive government initiatives, and growing demand for tools and equipment are all expected to contribute to the industrial sector's growth.
Amid this backdrop, it could be wise to buy fundamentally strong industrial stocks EnerSys (<a href="https://stocknews.com/stock/ENS/">ENS</a>), Konica Minolta, Inc. (<a href="https://stocknews.com/stock/KNCAY/">KNCAY</a>), and Clearwater Paper Corporation (<a href="https://stocknews.com/stock/CLW/">CLW</a>).
Before diving deeper into the fundamentals of these stocks, let's discuss what's shaping the industry's prospects.
The industrial sector has been affected by macroeconomic issues as industrial production fell <a href="https://www.federalreserve.gov/releases/g17/current/default.htm">0.6% sequentially in October</a>. Similarly, manufacturing output decreased by 0.7%, mainly because of a 10% decrease in motor vehicles and auto parts production due to UAW strikes at key automakers.
Nonetheless, October's mining output increased 2.2% annually and 0.4% sequentially. Mining's operating rate rose by 0.5 percentage points to 94.3%, 7.9 percentage points more than its long-term average.
Despite the near-term challenges, the industrial sector looks well-positioned for long-term growth due to the adoption of technologies. Increasing adoption of automation, robotization, artificial intelligence (AI), big data, the Internet of Things (IoT), cloud computing, and machine learning are helping manufacturers streamline production, reduce costs, improve quality, improve decision-making, and bolster safety.
The global Industry 4.0 market size is projected to grow at a <a href="https://www.marketsandmarkets.com/Market-Reports/industry-4-market-102536746.html">CAGR of 20.6%</a> to reach $165.50 billion by 2026. Additionally, favorable government initiatives such as the $1.2 trillion Bipartisan Infrastructure Bill, later signed into law called the Infrastructure Investment and Jobs Act, aim to provide <a href="https://edition.cnn.com/2021/07/28/politics/infrastructure-bill-explained/index.html">$550 billion</a> of new federal spending in America's infrastructure.
The new law will boost the demand for metals, machinery, and other necessary industrial products. The global industrial machinery market is anticipated to grow at a <a href="https://www.acumenresearchandconsulting.com/industrial-machinery-market">CAGR of 5.3%</a> to reach $1.04 trillion by 2032.
Furthermore, thanks to the boom in online shopping, the demand for packaging paper and board has grown considerably. The global demand for containerboard will reach <a href="https://www.statista.com/statistics/1090439/global-containerboard-demand/">226 million tons by 2032</a>. Investors' interest in industrial stocks is evident from the Vanguard Industrials Index Fund's (<a href="https://stocknews.com/stock/VIS/">VIS</a>) 20% returns year-to-date.
With these favorable trends in mind, let's delve into the fundamentals of the above-mentioned industrial stocks.
EnerSys (<a href="https://stocknews.com/stock/ENS/">ENS</a>)
ENS provides various stored energy solutions for industrial applications worldwide. It operates in three segments: Energy Systems, Motive Power, and Specialty. The company offers uninterruptible power systems applications for computer and computer-controlled systems, telecommunications systems, switchgear and electrical control systems, large-scale energy storage, integrated power solutions, and services.
On November 8, 2023, ENS announced that Landmark Dividend LLC placed an order for 50 units of ENS' proprietary and revolutionary energy storage and management systems, which enable energy optimization through various applications, including demand charge reduction, utility backup power, and dynamic fast charging for EVs.
ENS' President &amp; CEO David M. Shaffer said, "This important order demonstrates our consistent execution on our growth strategy and is just the beginning of the full commercialization of FC&amp;S which we previewed during our recent investor day."
"We are well-positioned to benefit from an enormous market opportunity as the need for energy optimization increases and access to resilient and reliable power is critical to enable the growing demand for public DC fast charging stations," he added.
In terms of forward non-GAAP P/E, ENS' 13.17x is 30.7% lower than the 18.99x industry average. Its 9.36x forward <a href="https://www.investopedia.com/terms/e/ev-ebitda.asp">EV/EBITDA</a> is 19.6% lower than the 11.63x industry average. Likewise, its 11.60x forward EV/EBIT is 29.4% lower than the 16.44x industry average.
ENS' net sales for the second quarter ended October 1, 2023, increased 0.2% year-over-year to $901 million. Its adjusted EBITDA rose 35.8% over the prior-year quarter to $116.40 million. The company's adjusted operating earnings increased 58.3% year-over-year to $103.50 million.
Also, its adjusted net earnings rose 67.8% year-over-year to $76.50 million. Its adjusted EPS came in at $1.84, representing an increase of 65.8% year-over-year.
Analysts expect ENS' EPS for the quarter ending December 31, 2023, to increase 45.5% year-over-year to $1.85. Its revenue for the quarter ending June 30, 2024, to increase 2.4% year-over-year to $930 million. It surpassed the consensus EPS estimates in each of the trailing four quarters. The stock has gained 34.8% year-to-date to close the last trading session at $99.52.
ENS' <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> reflect its solid prospects. It has an overall rating of B, equating to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
It is ranked #16 out of 91 stocks in the B-rated <a href="https://stocknews.com/category/industrial-equipment/">Industrial – Equipment</a> industry. It has a B grade for Growth, Value, and Quality. <a href="https://stocknews.com/stock/ENS/">Click here</a> to see the other ratings of ENS for Momentum, Stability, and Sentiment.
Konica Minolta, Inc. (<a href="https://stocknews.com/stock/KNCAY/">KNCAY</a>)
Based in Tokyo, Japan, KNCAY engages in the digital workplace, professional print, healthcare, and industrial sectors. It develops, manufactures, and sells multifunctional peripherals, digital printing systems, and related consumables and offers IT and printing solutions and services.
On October 26, 2023, KNCAY announced an agreement to transfer 80% of the shares of two of its Chinese manufacturing subsidiaries to Guangzhou Luxvisions Innovation Technology Limited. Through this strategic business alliance, KNCAY will optimize the structure of its business unit in the growing mobility field.
In terms of forward EV/Sales, KNCAY's 0.55x is 81.2% lower than the 2.91x industry average. Its 7.524x forward EV/EBITDA is 51.7% lower than the 15.59x industry average. Likewise, its 0.19x forward Price/Sales is 93.6% lower than the 2.95x industry average.
For the fiscal second quarter ended September 30, 2023, KNCAY's revenue rose 1.2% year-over-year to ¥286.36 billion ($2.02 billion). Its gross profit rose 3.4% year-over-year to ¥125.34 billion ($883.76 million). The company's operating profit came in at ¥5.19 billion ($36.59 million). In addition, its profit for the period and EPS came in at ¥1.25 billion ($8.81 million) and ¥2.17, respectively.
Street expects KNCAY's revenue for March 2024 is expected to increase 130.9% year-over-year to $7.93 billion. Over the past month, the stock has gained 0.1% to close the last trading session at $5.99.
KNCAY's POWR Ratings reflect this positive outlook. It has an overall rating of A, which translates to a Strong Buy in our proprietary rating system.
Within the Industrial – Equipment industry, it is ranked #12. It has an A grade for Value and a B for Momentum, Stability, and Quality. To see the other ratings of KNCAY for Growth and Sentiment, <a href="https://stocknews.com/stock/KNCAY/">click here</a>.
Clearwater Paper Corporation (<a href="https://stocknews.com/stock/CLW/">CLW</a>)
CLW is a manufacturer and supplier of bleached paperboard and consumer and parent roll tissue operating through two segments: Pulp and Paperboard and Consumer Products.
In terms of forward non-GAAP P/E, CLW's 5.15x is 68.2% lower than the 16.22x industry average. Its 3.74x forward EV/EBITDA is 55.1% lower than the 8.33x industry average. Likewise, its 0.29x forward Price/Sales is 75.9% lower than the 1.20x industry average.
CLW's net sales for the third quarter ended September 30, 2023, came in at $519.90 million. Its adjusted EBITDA rose 4.3% over the prior-year quarter to $80.60 million. The company's adjusted income increased 18.6% year-over-year to $37 million. Its adjusted income per share came in at $2.19, representing an increase of 19.7% year-over-year. In addition, its free cash flow rose significantly year-over-year to $74 million.
For fiscal 2023, CLW's EPS is expected to increase 92.6% year-over-year to $6.99. Over the past six months, the stock has gained 16.7% to close the last trading session at $36.01.
CLW's strong fundamentals are reflected in its POWR Ratings. It has an overall rating of A, which equates to a Strong Buy in our proprietary rating system.
It is ranked first out of 10 stocks in the B-rated <a href="https://stocknews.com/category/industrial-paper/">Industrial – Paper</a> industry. It has a B grade for Growth, Value, Stability, Sentiment, and Quality. <a href="https://stocknews.com/stock/CLW/">Click here</a> to see CLW's rating for Momentum.
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ENS shares were trading at $99.59 per share on Friday morning, up $0.07 (+0.07%). Year-to-date, ENS has gained 36.03%, versus a 24.31% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Dipanjan Banchur</h2> <img src='https:/wp-content/uploads/2021/11/Dipanjan-Banchur_headshots_3.jpg' style="float:left; padding:5px;width:125px;">Since he was in grade school, Dipanjan was interested in the stock market. This led to him obtaining a master's degree in Finance and Accounting. Currently, as an investment analyst and financial journalist, Dipanjan has a strong interest in reading and analyzing emerging trends in financial markets.<a href="https://stocknews.com/authors/?author=dipanjan-banchur">More...</a>The post <a href=https://stocknews.com/news/ens-kncay-clw-3-promising-industrial-stocks-to-secure-today/>3 Promising Industrial Stocks to Secure Today</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 Promising Industrial Stocks to Secure Today

The industrial market is poised for growth, with Industry 4.0 advancements and other innovative solutions across several verticals. Hence, fundamentally strong industrial stocks Franklin Electric Co. (FELE), Greif, Inc. (GEF), and Konica Minolta (KNCAY) might be solid buys for investors. Read more… The industrial market is growing due to federal investments in infrastructure and onshoring initiatives, presenting opportunities in commercial aerospace, utility infrastructure, and residential construction. Therefore, investors could consider investing in top industrial stocks Franklin Electric Co., Inc. (<a href="https://stocknews.com/stock/FELE/">FELE</a>), Greif, Inc. (<a href="https://stocknews.com/stock/GEF/">GEF</a>), and Konica Minolta, Inc. (<a href="https://stocknews.com/stock/KNCAY/">KNCAY</a>).
Despite drops in the utilities and electronics sector, in December 2023, industrial production in the United States showed a <a href="https://realeconomy.rsmus.com/retail-sales-and-industrial-production-point-to-a-strong-end-of-the-year/">0.1% growth</a>, indicating solid production activity, while capacity utilization was unchanged at 78.6%.
In addition, the global smart manufacturing market is thriving with government backing and a focus on automation, especially in the information technology and automotive sectors. As a result, the global smart manufacturing market is anticipated to grow at a <a href="https://www.grandviewresearch.com/industry-analysis/smart-manufacturing-market">CAGR of 14.9%</a> from 2023 to 2030.
Moreover, the Industry 4.0 market is driven by the adoption of automated equipment and emerging digital technologies. Compliance with regulations, the potential of IIoT, and the synergy of robotics with IoT for enhanced efficiency contribute to market growth. The global Industry 4.0 market is expected to grow at a <a href="https://www.grandviewresearch.com/industry-analysis/industry-4-market-report">CAGR of 19.9%</a> from 2023 to 2030.
Simultaneously, with the rising need for bulk transportation of products and import-export activity, the industrial packaging industry is booming. Furthermore, the market is estimated to be worth <a href="https://www.mordorintelligence.com/industry-reports/industrial-packaging-market">$66.27 billion in 2024</a> and is expected to grow at a CAGR of 4.7% to reach $83.45 billion by 2029.
Considering these conducive trends, let's examine the fundamentals of the three industrial stock picks.
Franklin Electric Co., Inc. (<a href="https://stocknews.com/stock/FELE/">FELE</a>)
FELE designs, manufactures, and distributes water and fuel pumping systems worldwide, operating through Water Systems; Fueling Systems; and Distribution segments. Its products cater to residential, agricultural, municipal, industrial, and energy markets.
On January 2, 2024, FELE announced that its subsidiary, Headwater Companies, acquired all of the assets of LCA Pump, LLC, which operates Water Works Pump in Springfield, Missouri. Water Works will become part of Headwater Wholesale, marking the company's entry into the Missouri market. The move supports Headwater's goal of becoming a leading distributor of water systems solutions in the United States.
On December 4, 2023, the company announced that another one of its subsidiaries, Franklin Water Treatment, LLC, acquired the assets of Action Manufacturing &amp; Supply, Inc., a manufacturer and wholesale distributor of residential water conditioning, filtration, and indoor/outdoor aeration systems, operating in Florida and North Carolina.
This is expected to expand FELE's channel's reach to more water treatment markets.
During the third quarter, which ended September 30, 2023, FELE reported <a href="https://www.investopedia.com/terms/n/netsales.asp">net sales</a> and gross profit of $538.43 million and $186.25 million, respectively. The company generated an EPS of $1.23. As of September 30, 2023, its total assets amounted to $1.73 billion, compared to its total assets of $1.69 billion as of December 31, 2022.
For the fiscal year 2023, the company expects its sales to be in the range of $2.05 billion to $2.15 billion and EPS to be in the range of $4.07 to $4.17.
Analysts expect FELE's revenue and EPS to grow 2.1% and 5.6% year-over-year to $494.77 million and $0.84, respectively, for the first quarter ending March 2024.
The stock has gained 11.1% over the past year to close the last trading session at $94.57. It gained marginally intraday.
FELE's <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> reflect its robust prospects. The stock has an overall rating of B, equating to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
It has a B grade for Stability and Quality. Within the B-rated <a href="https://stocknews.com/category/industrial-manufacturing/">Industrial - Manufacturing</a> industry, it is ranked #4 of 35 stocks.
To see FELE's additional POWR Ratings for Growth, Value, Momentum, and Sentiment, click <a href="https://stocknews.com/stock/FELE/">here</a>.
Greif, Inc. (<a href="https://stocknews.com/stock/GEF/">GEF</a>)
GEF is a global producer of industrial packaging, offering solutions like drums and containers. Also, the company is involved in paper packaging and land management, owning timber properties in the southeastern United States.
On January 12, 2024, GEF and IonKraft partnered for a pilot project to transform industrial packaging, specifically addressing recyclability and sustainability challenges in plastic jerrycans. IonKraft's plasma-based coating provides a recyclable barrier solution, aligning with GEF's commitment to innovative and eco-friendly packaging.
In the fourth quarter, which ended October 31, 2023, GEF's net sales stood at $1.31 billion. The company generated operating profit and net income of $112.40 million and $73.30 million, respectively. Moreover, it reported adjusted EBITDA and free cash flow of $199.20 million and $136.20 million, respectively.
For the fiscal year 2024, the company expects its adjusted EBITDA and free cash flow to be around $585 million and $200 million, respectively.
GEF's revenue is expected to grow 5.1% year-over-year to $5.62 billion for the fiscal year ending October 2025. Its EPS for the same year is expected to be $5.14, indicating a rise of 36.5% from the prior year. The company surpassed the EPS estimates in three of the trailing four quarters, which is impressive.
GEF's shares have gained marginally over the past three months to close the last trading session at $63.37.
GEF's positive fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, equating to a Buy in our proprietary rating system.
GEF has a B grade for Stability, Sentiment, and Quality. Within the B-rated <a href="https://stocknews.com/category/industrial-packaging/">Industrial - Packaging</a> industry, it is ranked #4 among 20 stocks.
In addition to the POWR Ratings stated above, one can access GEF's additional Growth, Value, and Momentum ratings <a href="https://stocknews.com/stock/GEF/">here</a>.
Konica Minolta, Inc. (<a href="https://stocknews.com/stock/KNCAY/">KNCAY</a>)
Based in Tokyo, Japan, KNCAY is a global company specializing in digital workplace solutions, professional printing, healthcare, and industrial products. Its offerings include multifunctional peripherals, diagnostic imaging systems, and various visual solutions for industrial applications.
On January 22, 2024, KNCAY announced that it would establish a joint venture company with FPT Japan Holdings Co., Ltd. (FPT) for MFP software development. The company aims to strengthen the profit base and ensure stable cash inflows through this partnership.
In the second quarter, which ended September 30, 2023, KNCAY's revenue rose 1.2% year-over-year to ¥286.36 billion ($1.93 billion). The company's gross profit increased 3.4% from the previous-year quarter to ¥125.34 billion ($845.59 million). It reported an EPS of ¥2.17.
For the six months ended September 30, KNCAY's net cash provided by operating activities came in at ¥32.03 billion ($216.06 million), up significantly year-over-year.
Street expects KNCAY's revenue to grow 127.7% year-over-year to $7.82 billion for the fiscal year ending March 2024. The company surpassed the revenue estimates in three of the trailing four quarters.
KNCAY's shares have declined 2.8% over the past month to close the last trading session at $5.54.
KNCAY's POWR Ratings reflect an optimistic outlook. The stock has an overall rating of A, equating to a Strong Buy in our proprietary rating system.
The stock has an A grade for Value and a B for Momentum, Stability, and Quality. Within the <a href="https://stocknews.com/category/industrial-equipment/">Industrial - Equipment</a> industry, it is ranked #11 among 92 stocks.
Click <a href="https://stocknews.com/stock/KNCAY/">here</a> for KNCAY's additional Growth and Sentiment ratings.
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<hr />
FELE shares were trading at $96.48 per share on Monday afternoon, up $1.91 (+2.02%). Year-to-date, FELE has declined -0.18%, versus a 1.73% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Anushka Dutta</h2> <img src='https:/wp-content/uploads/2021/08/Anushka-Dutta_Headshot_3.jpg' style="float:left; padding:5px;width:125px;">Anushka is an analyst whose interest in understanding the impact of broader economic changes on financial markets motivated her to pursue a career in investment research.<a href="https://stocknews.com/authors/?author=anushka-dutta">More...</a>The post <a href=https://stocknews.com/news/fele-gef-kncay-3-industrial-stock-buys-outpacing-competitors/>3 Industrial Stock Buys Outpacing Competitors</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 Industrial Stock Buys Outpacing Competitors

Axon Enterprise (AXON) raised its full-year revenue forecast on the backs of robust demand for its software solutions and a strong first-quarter performance. As the company gears up for its second-quarter earnings report, investors are eager to see whether AXON can sustain its recent momentum. Read on to learn more… Axon Enterprise, Inc. (<a href="https://stocknews.com/stock/AXON/">AXON</a>), a leading supplier of police body cameras and law enforcement drones globally, kicked off 2024 on a strong note, with impressive financial performance and an optimistic outlook for the year ahead. As we gear up for their upcoming second-quarter earnings report, the big question is whether AXON can keep up its winning streak.
Forecasts indicate a 27.8% year-over-year revenue surge to $478.81 million, reflecting steady growth and financial resilience. However, analysts expect a 12.5% decline in the company's <a href="https://www.investopedia.com/terms/e/eps.asp">EPS</a> from the preceding year's period to $0.97.
Axon has consistently exceeded revenue and EPS estimates in each of the trailing four quarters, including the first quarter. The company reported revenue of $461 million in the first quarter, up 34% year-on-year and above analysts' estimates of $441.57 million. On an adjusted basis, AXON reported earnings per share of $1.15, beating the consensus estimate of 95 cents per share.
The company's performance in the first quarter was buoyed by significant growth in Axon Cloud &amp; Services revenue, which increased by 52% year-over-year to $176 million, reflecting robust adoption of new products and expansions within its customer base. Moreover, its strategic initiatives in AI and VR for officer training and the impending acquisition of Dedrone to bolster its Drone as First Responder (DFR) initiative are poised to drive future growth.
With an upgraded full-year revenue forecast of $1.94 billion to $1.99 billion and adjusted core profit expectations raised to $430 million to $445 million, Axon anticipates sustained demand for its software solutions, and the recently launched TASER 10 policing device.
Shares of AXON have gained 52.2% over the past nine months and 15.5% year-to-date to close the last trading session at $298.38. However, the stock has plunged 3.7% over the past three months.
Let's look at factors that could influence AXON's performance in the upcoming months.
Latest Innovations and Strategic Expansions
On June 25, the company announced that the United States Marshals Service (USMS) had deployed its <a href="https://investor.axon.com/2024-06-25-United-States-Marshals-Service-to-adopt-TASER-10-and-companion-virtual-reality-training-solutions">next-gen TASER 10</a>, a less-lethal energy weapon. In conjunction with this deployment, the USMS will pilot Axon's VR Training solution to enhance the accessibility and affordability of training. The TASER 10 offers advanced features, including the ability to deploy ten targeted probes up to 45 feet, improving safety and decision-making during law enforcement operations.
This new weapon will replace the USMS's existing TASER X26P devices and seamlessly integrate with Axon's body-worn cameras, ensuring automatic activation and recording of critical moments. This system is supported by Axon's FedRAMP High Authorized digital evidence management system, which enhances situational awareness and accountability.
In the same month, AXON and Skydio announced a new end-to-end solution for drones in public safety, including a scalable Drone as First Responder (DFR) solution. This allows agencies to deploy drones to emergency calls for real-time situational awareness, improving response times and safety.
The integration of Skydio's autonomous drones with AXON's suite of public safety products, including real-time operations and evidence management, and Dedrone's airspace awareness technology enables more effective and scalable drone deployment in emergencies.
In May, the company announced the <a href="https://investor.axon.com/2024-05-06-Axon-to-acquire-Dedrone,-accelerating-the-next-generation-of-drone-solutions-to-protect-more-lives-in-more-places">acquisition of Dedrone</a>, a global leader in airspace security. This acquisition aligns with AXON's mission to Protect Life by enhancing its ability to counter drone threats and advance the use of Drones as First Responders (DFR).
Dedrone's innovative technologies will bolster the company's efforts to safeguard communities and improve responses to critical incidents. The transaction, subject to customary closing conditions, is expected to be completed in the second half of 2024.
Mixed Financial Performance
For the first quarter that ended March 31, 2024, AXON's net sales increased 34.3% year-over-year to $460.74 million. Its gross margin for the period stood at $260.05 million, up 27.4% year-over-year, while its adjusted EBITDA rose 67.3% from the year-ago value to $108.89 million. Moreover, its non-GAAP net income grew 37.4% and 30.7% from the previous year's quarter to $88.85 million and $1.15 per share, respectively.
However, its income from operations decreased marginally year-over-year to $16.28 million. The company's net cash flow from operating activities for the quarter stood at $15.94 million, while its adjusted free cash flow was negative $26.11 million. Also, as of March 31, 2024, AXON's cash and cash equivalents decreased to $403.87 million, compared to $598.55 million as of December 31, 2023.
Stretched Valuation
In terms of forward non-GAAP P/E, AXON is trading at 68.31x, 276.8% higher than the industry average of 18.13x. Likewise, the stock's forward non-GAAP PEG multiple of 4.52 is 172.7% higher than the industry average of 1.66x.
AXON's forward EV/Sales and Price/Sales multiples of 11.22 and 11.39 are considerably above the respective industry averages of 1.75 and 1.43. Moreover, its forward Price/Book ratio of 11.05x compares to the industry average of 2.62x.
High Profitability
AXON's trailing-12-month gross profit margin of 60.16% is 93.2% higher than the 31.14% industry average. Also, the stock's trailing-12-month levered FCF margin of 11.85% is 86.9% higher than the industry average of 6.34%. However, its trailing-12-month net income margin of 15.60% is 157.7% higher than the industry average of 6.06%.
Additionally, the stock's trailing-12-month ROCE and ROTA of 16.29% and 7.25% are 31.2% and 48.1% higher than the industry averages of 12.41% and 4.90%, respectively.
POWR Ratings Reflect Uncertainty
AXON's mixed fundamentals are reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. The stock has an overall rating of C, which translates to Neutral in our proprietary rating system. The POWR Ratings are calculated by taking into account 118 different factors, with each factor weighted to an optimal degree.
Our proprietary rating system also evaluates each stock based on eight distinct categories. AXON has a B grade for Quality, in sync with its higher-than-industry profitability.
However, with a 24-month beta of 1.61, the stock has earned a grade C for Stability. Also, AXON's D grade for Value is justified by its stretched valuation.
AXON is ranked #48 out of 86 stocks in the <a href="https://stocknews.com/category/industrial-equipment/">Industrial - Equipment</a> industry. <a href="https://stocknews.com/stock/AXON/">Click here</a> to access AXON's Growth, Momentum, and Sentiment ratings.
Bottom Line
While AXON's last quarterly report showed impressive revenue growth and improved profitability, concerns over stretched valuations, operational losses, and an anticipated EPS decline in the upcoming quarterly report raise concerns about its near-term performance. Considering these factors, it could be wise for investors to wait for a better entry point in the stock.
How Does Axon Enterprise, Inc. (AXON) Stack Up Against Its Peers?
AXON has an overall rating of C, which equates to a Neutral rating. You may check out these A-rated (Strong Buy) stocks within the <a href="https://stocknews.com/category/industrial-equipment/">Industrial - Equipment</a> industry: LSI Industries Inc. (<a href="https://stocknews.com/stock/LYTS/">LYTS</a>), NL Industries, Inc. (<a href="https://stocknews.com/stock/NL/">NL</a>), and Konica Minolta, Inc. (<a href="https://stocknews.com/stock/KNCAY/">KNCAY</a>). To explore more A and B-rated industrial equipment stocks, <a href="https://stocknews.com/category/industrial-equipment/">click here</a>.
What To Do Next?
Discover 10 widely held stocks that our proprietary model shows have tremendous downside potential. Please make sure none of these "death trap" stocks are lurking in your portfolio:
<a href="https://report.stocknews.com/free-report/10-stocks-to-sell/?formplacement=artbotad_10sell">10 Stocks to SELL NOW! &gt;</a>

<hr />
AXON shares were trading at $302.14 per share on Monday afternoon, up $3.76 (+1.26%). Year-to-date, AXON has gained 16.96%, versus a 17.56% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Shweta Kumari</h2> <img src='https:/wp-content/uploads/2022/03/Shweta-Kumari_Image-2.jpg' style="float:left; padding:5px;width:125px;">Shweta's profound interest in financial research and quantitative analysis led her to pursue a career as an investment analyst. She uses her knowledge to help retail investors make educated investment decisions.<a href="https://stocknews.com/authors/?author=shweta-kumari">More...</a>The post <a href=https://stocknews.com/news/axon-lyts-nl-kncay-is-axon-enterprise-axon-set-to-deliver-strong-q2-earnings/>Is Axon Enterprise (AXON) Set to Deliver Strong Q2 Earnings?</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

Is Axon Enterprise (AXON) Set to Deliver Strong Q2 Earnings?

LSI Industries (LYTS) reported solid financial results in the recently reported quarter. LYTS' continuously expanding portfolio, strategic acquisitions, and technological innovation are key drivers of the company's ongoing growth and success. So, should you buy this stock post its earnings release? Read more to find out... LSI Industries Inc. (<a href="https://stocknews.com/stock/LYTS/">LYTS</a>), a leader in non-residential lighting and retail display solutions, reported impressive fiscal 2024 first-quarter results. The company posted revenues of $108.19 million and adjusted operating income of $8.82 million.
Analysts expected the company's revenue for the fourth quarter (ended June 2024) to increase 2.7% year-over-year to $126.99 million, and its EPS is expected to be $0.19 for the same period.
The company acquired the privately held EMI Industries through an all-cash purchase price of $50 million expanding its display solutions capabilities within grocery, convenience store and restaurant markets. The acquisition contributes to LYTS' vision to build premier commercial lighting and retail display solutions business in North America.
Further, LYTS' Board of Directors declared a regular quarterly cash dividend of $0.05 per share in connection with the third quarter of fiscal 2024, which was paid on May 14, 2024, to shareholders of record as of the close of business on May 6, 2024. The indicated annual cash dividend rate is $0.20 per share.
James A. Clark, President, and Chief Executive Officer of LSI commented, "Our unique value proposition continues to build momentum across our key vertical markets, positioning LSI as a partner of choice for a growing, diverse base of customers across North America. Our third quarter results demonstrate further execution on this strategic focus, a performance that culminated in year-over-year growth in margin realization and profitability."
Shares of LYTS have gained 14% over the past six months and 27.6% over the past year to close its last trading session at $15.78.
Let's look at factors that could influence LYTS' performance in the upcoming months.
Positive Recent Developments
On April 19, LYTS announced the acquisition of privately held EMI Industries through an all-cash purchase price of $50 million. The acquisition expanded LYTS' display solutions capabilities within grocery, convenience store and restaurant markets. The acquisition contributes to the company's vision to build premier commercial lighting and retail display solutions business in North America.
The addition of EMI will lead to broadening of its product and services capabilities and is consistent with its Fast Forward strategy, positioning it to further capitalize on the ongoing, multi-year investment cycle evident across the grocery, refueling/c-store, and restaurant markets.
On February 27, LYTS' JSI Store Fixtures, shipped its first order of refrigerated retail displays featuring environmentally friendly R290 refrigerant. R290 is a propane-based system giving customers an alternative product which is non-toxic, zero ozone-depleting refrigerant with a Global Warming Potential of 3 compared to the others.
Stable Financials
For the third quarter that ended March 31, 2024, LYTS reported revenues of $108.19 million, and its adjusted operating income grew marginally from the year-ago value to $8.82 million. The company's adjusted <a href="https://www.investopedia.com/terms/n/netincome.asp">net income</a> and adjusted EPS came in at $6.24 million and $0.21, reflecting increases of 13.6% and 10.5% from the prior year's quarter, respectively.
Furthermore, the company's adjusted EBITDA for the quarter stood at $11.24 million. Its current assets and total assets came in at $143.48 million and $287.97 million as of March 31, 2024.
Impressive Historical Growth
LYTS' revenue grew at a CAGR of 18.1% over the past three years, while its EBITDA improved at a CAGR of 39.3%. Its EBIT increased at a CAGR of 58.6% over the same period while the company's net income and EPS grew at respective CAGRs of 56.9% and 52.1% over the same time frame.
Also, the company's normalized net income and total assets have improved at CAGRs of 55.4% and 13.5% over the past three years.
Favorable Analyst Estimates
Analysts expect LYTS' revenue for the second quarter (ending December 2024) to come in at $136.45 million, indicating an increase of 25.2% year-over-year and the company's EPS is expected to grow 20% year-over-year to $0.24 for the same period. Moreover, the company has surpassed the consensus revenue and EPS estimates in all of the trailing four quarters.
For the fiscal year (ending June 2025), the company's EPS is anticipated to grow 6.8% year-over-year to $0.89, while its revenue is expected to increase 19.1% year-over-year to $556.93 million.
High Profitability
LYTS' trailing-12-month levered FCF margin of 8.26% is 29.2% higher than the 6.39% industry average. Its trailing-12-month ROCE of 15.14% is considerably higher than the industry average of 12.33%. Likewise, the stock's trailing-12-month Asset Turnover Ratio of 1.60x is significantly higher than the industry average of 0.78x.
Furthermore, the stock's trailing-12-month ROTC and ROTA of 10.33% and 9.63% are higher than the 7.19% and 4.90% industry average, respectively.
Lower Valuation
In terms of forward non-GAAP P/E, LYTS is currently trading at 16.88x, 13.1% lower than the industry average of 19.41x. Likewise, the stock's forward EV/Sales and Price/Sales of 0.99x and 0.95x are considerably lower than the industry average of 1.84x and 1.52x, respectively.
Additionally, the stock's forward EV/EBITDA of 9.68x is 17% lower than the industry average of 11.66x.
POWR Ratings Reflect Promise
LYTS' robust fundamentals are reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. The stock has an overall rating of A, translating to a Strong Buy in our proprietary system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
Our proprietary rating system also evaluates each stock based on eight distinct categories. LYTS has an A grade for Value and Sentiment, consistent with its lower-than-industry valuation and robust financial performance.
The stock also has a B grade for Quality, in sync with its higher-than-industry profitability. LYTS has topped among the 86 stocks in the <a href="https://stocknews.com/category/industrial-equipment/">Industrial - Equipment</a> industry.
Beyond what I have stated above, we have also given LYTS grades for Growth, Stability, and Momentum. Get access to all the LYTS ratings <a href="https://stocknews.com/stock/LYTS/">here</a>.
Bottom Line
LYTS reported solid financial results in the last reported quarter. Further, the company's long-term prospects appear promising, driven by leadership in non-residential lighting and display solutions, cutting-edge product offerings, strategic acquisition and investments, broadening portfolio, and technological innovations.
Also, commercial expansion, operational excellence initiatives, and expand capabilities and market reach contribute to the company's ongoing growth in the competitive market. Given strong financials, accelerating profitability, and robust growth outlook, it could be wise to invest in this stock.
How Does LSI Industries Inc. (LYTS) Stack Up Against Its Peers?
While LYTS has an overall POWR Rating of A, investors could also check out these other stocks within the <a href="https://stocknews.com/category/industrial-equipment/">Industrial - Equipment</a> industry with A (Strong Buy) or B (Buy) ratings: Konica Minolta, Inc. (<a href="https://stocknews.com/stock/KNCAY/">KNCAY</a>), Makita Corporation (<a href="https://stocknews.com/stock/MKTAY/">MKTAY</a>), and Sumitomo Electric Industries, Ltd. (<a href="https://stocknews.com/stock/SMTOY/">SMTOY</a>).
For exploring more A and B-rated industrial stocks, <a href="https://stocknews.com/category/industrial-equipment/">click here</a>.
What To Do Next?
43 year investment veteran, Steve Reitmeister, has just released his 2024 market outlook along with trading plan and top 11 picks for the year ahead.
<a href="https://report.stocknews.com/sign-up/stock-market-outlook-2024/?formplacement=artbotad_smo24_rep">2024 Stock Market Outlook &gt;</a>

<hr />
LYTS shares were trading at $16.19 per share on Tuesday afternoon, up $0.41 (+2.60%). Year-to-date, LYTS has gained 15.79%, versus a 17.53% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Rjkumari Saxena</h2> <img src='https:/wp-content/uploads/2024/04/Rajkumari-Saxena_Image-1.jpeg' style="float:left; padding:5px;width:125px;">Rajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions.<a href="https://stocknews.com/authors/?author=rajkumari-saxena">More...</a>The post <a href=https://stocknews.com/news/lyts-kncay-mktay-smtoy-should-you-add-lsi-industries-to-your-portfolio-for-steady/>Should You Add LSI Industries to Your Portfolio for Steady Gains?</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

Should You Add LSI Industries to Your Portfolio for Steady Gains?

Axon Enterprise's (AXON) first-quarter results easily beat analysts' expectations. Also, the company's long-term outlook appears rosy with continuous innovation, broadening product portfolio, and strategic alliances. So, the stock a secure investment today? Read more to find out... Axon Enterprise, Inc. (<a href="https://stocknews.com/stock/AXON/">AXON</a>), a leading police body cameras and law enforcement drones provider globally is set to release its second quarter 2024 financial results after the market closes on Tuesday, August 6, 2024. During the first quarter, the company reported impressive financial performance with revenue of $461 million indicating improvement of 34% year-on-year.
During the first quarter, AXON's next-gen less-lethal energy weapon, TASER 10 was deployed by United States Marshals Service (USMS) for training and equipping Deputy U.S. Marshals in fugitive apprehension, judiciary security, and safeguarding witnesses exhibiting the robust demand for its software solutions.
Also, the company extended its alliance with Skydio for delivering a new end-to-end solution for drones in public safety, including a scalable Drone as First Responder (DFR) solution. The strategic initiatives strengthen AXON's products in law enforcement technology and its market growth prospects.
Further, Axon's recent product innovations like its latest AI-driven product, Draft One, a revolutionary new software tool to draft high-quality police report narratives, and The Axon mobile app, the first mobile app which brings both digital evidence and records management into the same user interface reflects its commitment to provide innovative solutions.
The company raised its full year 2024 outlook. AXON expects its revenue to range from $1.94 billion to $1.99 billion, representing nearly 26% annual growth at the midpoint. Also, the company expects adjusted EBITDA between $430 million and $445 million, implying adjusted EBITDA margin of 22%.
Shares of AXON have gained 23.6% over the past six months and 72.5% over the past year to close its last trading session at $310.59. However, over the past three months, the stock grew marginally only.
Let's look at factors that could influence AXON's performance in the upcoming months.
Positive Recent Developments
On June 25, AXON announced that the United States Marshals Service (USMS) deployed its next-gen less-lethal energy weapon, TASER 10. The USMS will also pilot AXON's VR Training solution to support the deployment of TASER 10 and to offer more affordable and accessible training across a variety of immersive real-world scenarios.
The TASER 10 provides advanced features, like, its ability to deploy ten targeted probes up to 45 feet, enhances safety and decision-making during law enforcement operations. It will play an essential role for the USMS while training and equipping Deputy U.S. Marshals in fugitive apprehension, judiciary security, and safeguarding witnesses.
Further, on June 20, AXON and Skydio, the leading U.S. drone manufacturer and the world leader in autonomous flight, partnered to deliver an end-to-end offering for drones in public safety, including a scalable Drone as First Responder (DFR) solution. It will allow public safety agencies to customize and scale drones and DFR programs seamlessly.
This expanded the companies' alliance and will bring technology and services to advance rapid incident response, augment resource allocation, and improve officer and community safety.
Also, on May 6, the company entered into a definitive agreement to acquire Dedrone, a global leader in airspace security. Dedrone's innovative technologies will contribute to AXON's mission to Protect Life by offering immense value to public safety and national security entities worldwide.
The acquisition will further strengthen AXON's ability to help customers safeguard communities, improve response to critical incidents and protect lives in varied places.
Mixed Financials
For the first quarter that ended March 31, 2024, AXON's net sales increased 34.3% year-over-year to $460.74 million, of which its net sales from products grew 24% from the year-ago value to $272.05 million. However, its income from operations decreased marginally year-over-year to $16.28 million.
Furthermore, the company's non-GAAP net income of $88.85 million and $1.15 per common share, indicates growth of 37.4% and 30.7% from the prior year's quarter, respectively. And its adjusted <a href="https://www.investopedia.com/terms/e/ebitda.asp">EBITDA</a> rose 67.3% year-over-year to $108.89 million.
Also, AXON's adjusted free cash flow was negative $26.11 million. The company's cash and cash equivalents decreased to $403.87 million as of March 31, 2024, compared to $598.55 million as of December 31, 2023.
Solid Historical Growth
AXON's revenue grew at CAGR of 32.1% over the past three years, while its tangible book value improved at a CAGR of 13.3% over the same timeframe. The company's total assets and levered free cash flow increased at respective CAGRs of 37.1% and 106.6% over the past three years.
Favorable Analyst Estimates
Analysts expect AXON's revenue for the second quarter (ended June 2024) to come in at $477.94 million, indicating an increase of 27.6% year-over-year. However, the consensus EPS estimate of $0.98 for the same period reflects a decrease of 11.9% year-over-year. Furthermore, the company has topped the consensus revenue and EPS estimates in each of the trailing four quarters.
For the fiscal year (ending December 2024), the company's revenue and EPS are anticipated to grow 26.6% and 6.9% year-over-year to $1.98 billion and $4.43, respectively. In addition, Street expects its revenue and EPS for the fiscal year 2025 to grow 21.3% and 24.5% from the prior year to $2.40 billion and $5.51, respectively.
High Profitability
AXON's trailing-12-month gross profit margin and net income margin of 60.16% and 15.60% are 92.7% and 154.7% higher than the industry averages of 31.21% and 6.13%, respectively. The stock's trailing-12-month levered FCF margin of 11.85% is considerably higher than the industry average of 6.35%.
Additionally, the stock's trailing-12-month ROCE and ROTA of 16.29% and 7.25% are 29% and 46.3% higher than the industry averages of 12.62% and 4.96%, respectively.
Stretched Valuation
In terms of forward non-GAAP P/E, AXON is currently trading at 70.15x, 260.6% higher than the industry average of 19.46x. Also, the stock's forward EV/Sales and Price/Sales of 11.67x and 11.85x are significantly higher than the industry average of 1.86x and 1.52x, respectively.
In addition, the stock's forward EV/EBITDA and Price/Book of 52.39x and 11.50x are 346.6% and 306.1% higher than the industry averages of 11.73x and 2.83x, respectively.
POWR Ratings Reflect Uncertainty
AXON's mixed fundamentals are reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. The stock has an overall rating of C, translating to a Neutral in our proprietary system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
Our proprietary rating system also evaluates each stock based on eight distinct categories. AXON has a B for Quality, consistent with its higher-than-industry profitability. It also has a B grade for Growth, in sync with its stellar performance in the last reported quarter.
However, the stock has a D grade for Value, consistent with its stretched valuation.
AXON is ranked #45 among the 86 stocks in the <a href="https://stocknews.com/category/industrial-equipment/">Industrial - Equipment</a> industry.
Beyond what I have stated above, we have also given AXON grades for Stability, Sentiment, and Momentum. Get access to all the AXON ratings <a href="https://stocknews.com/stock/AXON/">here</a>.
Bottom Line
AXON's last quarterly report showed impressive revenue growth and improved profitability hailing high hopes for the next quarterly report to be announced soon. The company's strong presence across various government organizations, together with its innovative product portfolio expansion and strategic acquisition demonstrate its strength and efficiency of operating model.
However, given its stretched valuations, operational losses, and an anticipated EPS decline in the upcoming quarterly report raise, waiting for a better entry point in this stock seems wise now.
Stocks to Consider Instead of Axon Enterprise, Inc. (AXON)
Given its near-term uncertain prospects, the odds of AXON outperforming in the weeks and months ahead are compromised. However, there are many industry peers with much more impressive POWR Ratings. So, consider these A (Strong Buy) or B (Buy) stocks from the <a href="https://stocknews.com/category/industrial-equipment/">Industrial - Equipment</a> industry instead:
LSI Industries Inc. (<a href="https://stocknews.com/stock/LYTS/">LYTS</a>)
NL Industries, Inc. (<a href="https://stocknews.com/stock/NL/">NL</a>)
Konica Minolta, Inc. (<a href="https://stocknews.com/stock/KNCAY/">KNCAY</a>).
For exploring more A and B-rated software stocks, <a href="https://stocknews.com/category/industrial-equipment/">click here</a>.
What To Do Next?
Discover 10 widely held stocks that our proprietary model shows have tremendous downside potential. Please make sure none of these "death trap" stocks are lurking in your portfolio:
<a href="https://report.stocknews.com/free-report/10-stocks-to-sell/?formplacement=artbotad_10sell">10 Stocks to SELL NOW! &gt;</a>

<hr />
AXON shares were trading at $309.00 per share on Monday afternoon, down $1.59 (-0.51%). Year-to-date, AXON has gained 19.61%, versus a 15.38% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Rjkumari Saxena</h2> <img src='https:/wp-content/uploads/2024/04/Rajkumari-Saxena_Image-1.jpeg' style="float:left; padding:5px;width:125px;">Rajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions.<a href="https://stocknews.com/authors/?author=rajkumari-saxena">More...</a>The post <a href=https://stocknews.com/news/axon-lyts-nl-kncay-is-axon-enterprise-a-secure-investment-in-public-safety/>Is Axon Enterprise a Secure Investment in Public Safety</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

Is Axon Enterprise a Secure Investment in Public Safety

Axon Enterprise's (AXON) first-quarter results easily beat analysts' expectations. Also, the company's long-term outlook appears rosy with continuous innovation, broadening product portfolio, and strategic alliances. So, the stock a secure investment today? Read more to find out... Axon Enterprise, Inc. (<a href="https://stocknews.com/stock/AXON/">AXON</a>), a leading police body cameras and law enforcement drones provider globally is set to release its second quarter 2024 financial results after the market closes on Tuesday, August 6, 2024. During the first quarter, the company reported impressive financial performance with revenue of $461 million indicating improvement of 34% year-on-year.
During the first quarter, AXON's next-gen less-lethal energy weapon, TASER 10 was deployed by United States Marshals Service (USMS) for training and equipping Deputy U.S. Marshals in fugitive apprehension, judiciary security, and safeguarding witnesses exhibiting the robust demand for its software solutions.
Also, the company extended its alliance with Skydio for delivering a new end-to-end solution for drones in public safety, including a scalable Drone as First Responder (DFR) solution. The strategic initiatives strengthen AXON's products in law enforcement technology and its market growth prospects.
Further, Axon's recent product innovations like its latest AI-driven product, Draft One, a revolutionary new software tool to draft high-quality police report narratives, and The Axon mobile app, the first mobile app which brings both digital evidence and records management into the same user interface reflects its commitment to provide innovative solutions.
The company raised its full year 2024 outlook. AXON expects its revenue to range from $1.94 billion to $1.99 billion, representing nearly 26% annual growth at the midpoint. Also, the company expects adjusted EBITDA between $430 million and $445 million, implying adjusted EBITDA margin of 22%.
Shares of AXON have gained 23.6% over the past six months and 72.5% over the past year to close its last trading session at $310.59. However, over the past three months, the stock grew marginally only.
Let's look at factors that could influence AXON's performance in the upcoming months.
Positive Recent Developments
On June 25, AXON announced that the United States Marshals Service (USMS) deployed its next-gen less-lethal energy weapon, TASER 10. The USMS will also pilot AXON's VR Training solution to support the deployment of TASER 10 and to offer more affordable and accessible training across a variety of immersive real-world scenarios.
The TASER 10 provides advanced features, like, its ability to deploy ten targeted probes up to 45 feet, enhances safety and decision-making during law enforcement operations. It will play an essential role for the USMS while training and equipping Deputy U.S. Marshals in fugitive apprehension, judiciary security, and safeguarding witnesses.
Further, on June 20, AXON and Skydio, the leading U.S. drone manufacturer and the world leader in autonomous flight, partnered to deliver an end-to-end offering for drones in public safety, including a scalable Drone as First Responder (DFR) solution. It will allow public safety agencies to customize and scale drones and DFR programs seamlessly.
This expanded the companies' alliance and will bring technology and services to advance rapid incident response, augment resource allocation, and improve officer and community safety.
Also, on May 6, the company entered into a definitive agreement to acquire Dedrone, a global leader in airspace security. Dedrone's innovative technologies will contribute to AXON's mission to Protect Life by offering immense value to public safety and national security entities worldwide.
The acquisition will further strengthen AXON's ability to help customers safeguard communities, improve response to critical incidents and protect lives in varied places.
Mixed Financials
For the first quarter that ended March 31, 2024, AXON's net sales increased 34.3% year-over-year to $460.74 million, of which its net sales from products grew 24% from the year-ago value to $272.05 million. However, its income from operations decreased marginally year-over-year to $16.28 million.
Furthermore, the company's non-GAAP net income of $88.85 million and $1.15 per common share, indicates growth of 37.4% and 30.7% from the prior year's quarter, respectively. And its adjusted <a href="https://www.investopedia.com/terms/e/ebitda.asp">EBITDA</a> rose 67.3% year-over-year to $108.89 million.
Also, AXON's adjusted free cash flow was negative $26.11 million. The company's cash and cash equivalents decreased to $403.87 million as of March 31, 2024, compared to $598.55 million as of December 31, 2023.
Solid Historical Growth
AXON's revenue grew at CAGR of 32.1% over the past three years, while its tangible book value improved at a CAGR of 13.3% over the same timeframe. The company's total assets and levered free cash flow increased at respective CAGRs of 37.1% and 106.6% over the past three years.
Favorable Analyst Estimates
Analysts expect AXON's revenue for the second quarter (ended June 2024) to come in at $477.94 million, indicating an increase of 27.6% year-over-year. However, the consensus EPS estimate of $0.98 for the same period reflects a decrease of 11.9% year-over-year. Furthermore, the company has topped the consensus revenue and EPS estimates in each of the trailing four quarters.
For the fiscal year (ending December 2024), the company's revenue and EPS are anticipated to grow 26.6% and 6.9% year-over-year to $1.98 billion and $4.43, respectively. In addition, Street expects its revenue and EPS for the fiscal year 2025 to grow 21.3% and 24.5% from the prior year to $2.40 billion and $5.51, respectively.
High Profitability
AXON's trailing-12-month gross profit margin and net income margin of 60.16% and 15.60% are 92.7% and 154.7% higher than the industry averages of 31.21% and 6.13%, respectively. The stock's trailing-12-month levered FCF margin of 11.85% is considerably higher than the industry average of 6.35%.
Additionally, the stock's trailing-12-month ROCE and ROTA of 16.29% and 7.25% are 29% and 46.3% higher than the industry averages of 12.62% and 4.96%, respectively.
Stretched Valuation
In terms of forward non-GAAP P/E, AXON is currently trading at 70.15x, 260.6% higher than the industry average of 19.46x. Also, the stock's forward EV/Sales and Price/Sales of 11.67x and 11.85x are significantly higher than the industry average of 1.86x and 1.52x, respectively.
In addition, the stock's forward EV/EBITDA and Price/Book of 52.39x and 11.50x are 346.6% and 306.1% higher than the industry averages of 11.73x and 2.83x, respectively.
POWR Ratings Reflect Uncertainty
AXON's mixed fundamentals are reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. The stock has an overall rating of C, translating to a Neutral in our proprietary system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
Our proprietary rating system also evaluates each stock based on eight distinct categories. AXON has a B for Quality, consistent with its higher-than-industry profitability. It also has a B grade for Growth, in sync with its stellar performance in the last reported quarter.
However, the stock has a D grade for Value, consistent with its stretched valuation.
AXON is ranked #45 among the 86 stocks in the <a href="https://stocknews.com/category/industrial-equipment/">Industrial - Equipment</a> industry.
Beyond what I have stated above, we have also given AXON grades for Stability, Sentiment, and Momentum. Get access to all the AXON ratings <a href="https://stocknews.com/stock/AXON/">here</a>.
Bottom Line
AXON's last quarterly report showed impressive revenue growth and improved profitability hailing high hopes for the next quarterly report to be announced soon. The company's strong presence across various government organizations, together with its innovative product portfolio expansion and strategic acquisition demonstrate its strength and efficiency of operating model.
However, given its stretched valuations, operational losses, and an anticipated EPS decline in the upcoming quarterly report raise, waiting for a better entry point in this stock seems wise now.
Stocks to Consider Instead of Axon Enterprise, Inc. (AXON)
Given its near-term uncertain prospects, the odds of AXON outperforming in the weeks and months ahead are compromised. However, there are many industry peers with much more impressive POWR Ratings. So, consider these A (Strong Buy) or B (Buy) stocks from the <a href="https://stocknews.com/category/industrial-equipment/">Industrial - Equipment</a> industry instead:
LSI Industries Inc. (<a href="https://stocknews.com/stock/LYTS/">LYTS</a>)
NL Industries, Inc. (<a href="https://stocknews.com/stock/NL/">NL</a>)
Konica Minolta, Inc. (<a href="https://stocknews.com/stock/KNCAY/">KNCAY</a>).
For exploring more A and B-rated software stocks, <a href="https://stocknews.com/category/industrial-equipment/">click here</a>.
What To Do Next?
Discover 10 widely held stocks that our proprietary model shows have tremendous downside potential. Please make sure none of these "death trap" stocks are lurking in your portfolio:
<a href="https://report.stocknews.com/free-report/10-stocks-to-sell/?formplacement=artbotad_10sell">10 Stocks to SELL NOW! &gt;</a>

<hr />
AXON shares were trading at $309.00 per share on Monday afternoon, down $1.59 (-0.51%). Year-to-date, AXON has gained 19.61%, versus a 15.38% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Rjkumari Saxena</h2> <img src='https:/wp-content/uploads/2024/04/Rajkumari-Saxena_Image-1.jpeg' style="float:left; padding:5px;width:125px;">Rajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions.<a href="https://stocknews.com/authors/?author=rajkumari-saxena">More...</a>The post <a href=https://stocknews.com/news/axon-lyts-nl-kncay-is-axon-enterprise-a-secure-investment-in-public-safety/>Is Axon Enterprise a Secure Investment in Public Safety?</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

Top Stock Ideas Sent Daily — Join and Gain Your Edge

Top Stock Ideas Sent Daily — Join and Gain Your Edge

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Konica Minolta

Konica Minolta (KNCAY) Forecast

Konica Minolta (OTC:KNCAY) Stock, Quote.Headers.trade-ideas