Investors love a strong bull market, and it looks like that's where things are headed today. Investors have moved past tariff fears to drive up the market, and they're supported by many strong economic indicators like low unemployment and higher retail sales.
However, investors shouldn't lose sight of the fundamentals that make a stock worth buying for the long term and sacrifice them for short-term hype.
If you have $1,000 to invest today after paying off debts and saving for an emergency fund, look for a growth stock that can reward you today and still have juice left to keep going for years. Consider Axon Enterprise (AXON 0.94%), a super-growth stock that stands out for many reasons.
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The performance
Axon makes tech-driven products for the public safety industry, including police and other first responders. Its best-known product is the Taser, and it also makes body cameras and drones. It also has an AI-powered platform used for data analysis and record-keeping. Its three categories are train and prepare, communicate and act, and analyze and report. The company's mission is to reduce gun-related deaths and use technology to make conflict safer for everyone involved.
This is a mission almost anyone can get on board with, and Axon's sales have been growing at a fast pace. In the 2025 first quarter, revenue increased 31% year over year, and annual recurring revenue increased 34%. The company reported $2.1 billion in first-quarter revenue, and it has $9.9 billion in future booking contracts. As Axon releases new products and features that support more expansive contracts, it has raised full-year revenue guidance.
The company is also extremely profitable. Gross margin increased 4.4 percentage points to 60.6% in the quarter, and adjusted earnings per share (EPS) were $1.41.
The moat
Axon's products are designed for law enforcement agencies and public safety programs. These are products that take the concept up a notch, empowering users with data and rapid analysis. Its innovations include Axon Outpost, a fixed camera-based device for dense, high-traffic areas, which has video and automatic license plate reading (ALPR) capabilities and produces immediate and actionable data about vehicles like make and model, and Axon Lightpost, which attaches a similar device to light posts for enhanced safety.
The company's products are exclusive, and it has built its business by developing contracts with many partners. These partners report value from Axon's platform, such as a 75% decrease in time spent redacting evidence through Axon's Redaction Assistant, three ALPR devices being equivalent to having three officers in the field, and a 67% decrease in drafting written reports through Axon's Draft One solution.
This is a niche space, but a huge one, with low competition and an edge in its disruptive technology. About 95% of its revenue comes from subscriptions, which would make it tougher for competition to try to squeeze in.
The opportunity
Management sees a $126 billion opportunity across law enforcement, government, and other areas. Law enforcement accounts for about $15 billion in market opportunity, and it's only about 15% penetrated. International government is its largest opportunity at $58 billion. Right now, it has 1% of the average customer budget.
The company has several growth drivers in creating new technology and upgrading its devices and platforms, as well as expanding globally and finding new use cases for its products and solutions. One interesting place it sees potential is in modernizing older solutions, where it thinks it can optimize current products without spending a lot of money on creating new technology, resulting in a high return on investment.
The price
Axon stock trades at a premium valuation of 96 times forward, 1-year earnings. That's quite expensive for a stock in any situation. However, Axon gets a premium valuation because of its moat and opportunity. There's a lot to expect from Axon, and it should provide years of growth and strong performance. If you can buy today and hold for many years, Axon stock is a smart investment.
