Picking Up More Shares of This Holding After Multiple Wins

Symbol	Transaction Type	# Shares Traded	Recent Price $	Shares Owned After Trade	% Portfolio
AXON	Buy	50	405.33	510	3.3

After you receive this alert, the Portfolio will buy 50 shares of Axon Enterprise (AXON) at or near $407. Following the trade, the Portfolio will own 510 AXON shares, roughly 3.3% of its assets.

We are one again increasing the Portfolio’s exposure to AXON shares, using the near oversold condition in the shares and the multi-state announcements served up by the company to do so. Those multi-state announcements refer to new Corrections deployments across four states, and as you’ll see below they include a combination of hardware and services:

The New York State Department of Corrections and Community Supervision (NYS DOCCS) has deployed Axon’s connected ecosystem, including Body 4 cameras, Fusus, Fleet in-car video, Dedrone and Skydio drones, across its 42 facilities and 15,000 officers, and is now testing additional AI tools.

The Ohio Department of Rehabilitation and Correction (ODRC), the first rehabilitation facility in the nation to adopt body-worn cameras, has added Axon TASER devices to reduce officer assaults and is piloting AI tools to support productivity and decision-making.

The Maryland Department of Public Safety and Correctional Services (Maryland DPSCS) is adopting Axon Body 4 cameras across all 17 facilities following a successful trial period that saw staff assaults drop 40% in August, compared to the same month last year.

The North Carolina Department of Adult Correction (NCDAC) has expanded its connected technology platform to promote safety and efficiency, including additional TASER 10 energy weapons, Axon Body 4 cameras, Fusus real-time operations solution, Dedrone airspace security systems, and Skydio drones.

The corrections wins above follow other recent ones with U.K police for Axon Body 4 cameras and those in Covington, Kentucky; Auburn, New York; Waco, Texas; and the Los Angeles Police Department. Similar to those corrections wins, these others span the use of Tasers and body-worn cameras as well as car-mounted cameras. Those hardware solutions are feeders for Axon’s data retention, video storage and cloud solutions.

We see these announcements adding to Axon’s Future Contracted Bookings, a key metric that we track for the company as well as public safety markets embracing technology and productivity solutions amid staffing pain points. The Bureau of Labor Statistics tracks roughly 693,200 police and sheriff’s patrol officers nationally, with a projected need for about 60,100 openings per year through 2035 to replace departing or retiring personnel. At the same time, roughly 70% of law enforcement agencies report that hiring is harder than it was five years ago, and roughly 65% report too few applicants per opening.

As police and public safety have to do the same or more with fewer staff members, that bodes well for further adoption of Axon’s hardware and software solutions, and its EPS and cash flow prospects.

One of the comments that explains the continued pressure on AXON shares is “they’re expensive.”

That comment likely refers to the current P/E ratio of about 53-times expected 2026 EPS near $7.65 and the 38-times figure if we use 2027 EPS of $10.58. Here’s the thing: Between 2025 and 2028, Axon is expected to deliver compound EPS growth of about 27.5% per year.

As we argued back in late June when we picked up more shares of Palantir (PLTR) for the Portfolio just above $107, the better way to value the shares is to use a price to earnings growth (PEG) ratio. Indeed, that was a wonderful pick up for us and over time the market came around to realize the smarter way to value PLTR shares.

Given the $15.1 billion in future contracted bookings at Axon exiting the June quarter and the consensus revenue step up to $3.7 billion this year from $2.78 billion in 2025 and another one to almost $4.8 billion in 2027, we’d argue that here too a PEG ratio is the better metric to value AXON shares.

At the recent price near $403, we find AXON shares are trading at PEG ratio of 1.38x on consensus 2027 EPS of $10.58. I’ll grant you that isn’t the cheapest PEG ratio, but certainly not expensive either. For a frame of reference, near $600 is where the PEG ratio crosses 2.0-times based on expected 2027 EPS. If we extend that to the 2028 consensus EPS figure of $14.22, that 2.0-times crossover point comes at $785. And for those wondering, near a share price of $405, AXON shares are trading at a PEG near 1.0 when measured against 2028 consensus EPS.

As we add these additional AXON shares to the Portfolio’s position, we’ll reset our checkpoint level to $360 from $380.

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(Please note that we are looking to execute these trades at or near the share price mentioned above. Once the trade is completed, subscribers can see the trade’s executed price here. Be sure to toggle the chart to sort by Purchase Date.)

At the time of publication, TheStreet Pro Portfolio was long AXON and PLTR.