Please ensure Javascript is enabled for purposes of website accessibility

Why Axon Enterprise Stock Is Rising Today

By Rich Duprey – Jun 23, 2020 at 4:11PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The law enforcement protective equipment maker has seen strong demand for its products.

What happened

Shares of Axon Enterprise (AXON 1.35%) were up about 5% in afternoon trading as police reform measures get closer scrutiny.

So what

While no news particular to Axon caused the stock to rise today, New Mexico's legislature just approved a bill to require all police officers in the state to wear body cameras. The bill was sent to the governor for her signature. The U.S. Senate is also preparing to debate a national police reform measure this week.

Police officer wearing body camera

Image source: Axon Enterprise.

Now what

Axon Enterprise virtually owns the police body cam market with 47 out of 69 major U.S. cities using its cameras. Departments in New York, Los Angeles, Chicago, and Philadelphia all use Axon body cams. No other competitor comes close, with second place Motorola Solutions supplying just seven major cities.

In the current charged environment, body cameras are increasingly seen as de rigueur equipment for police officers to protect both the public and the officer. In the first quarter, Axon's sensors segment revenue grew 41% year over year due to strong demand for its new Axon Body 3 camera.

Rich Duprey has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Axon Enterprise. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Axon Enterprise Stock Quote
Axon Enterprise
$113.46 (1.35%) $1.51

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/24/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.