Chart of the Day: What to Watch From a Holding When Earnings Arrive
The name reports this week and has pulled back to a very strong support line.
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This is the week where the rubber meets the road for Axon Enterprise AXON. The company reports earnings on Wednesday after the close and if the last report is any indication this one should be strong. However, we now have to be worried if the company (like many others have prior) issuing cautious guidance due to tariff concerns.
For a name that trades at 84 times next year's (2026) earnings estimate there is really no margin for a miss or cautionary talk. We'll have to see how the call goes after the report.
As for the chart, steady as she goes. If the stock finds good support here at the $580 level then we could potentially see a run back towards those old highs above $700. That would be a nice move but with the current overall market fairly overbought it might take a gigantic guidance raise to see that happen right now.
Stochastics are strong and starting to roll over, which means momentum is starting to wane. MACD (moving average convergence/divergence) is still on a strong buy signal while money flow has started to move up nicely. The stock is in a nice uptrend here, with higher highs and higher lows.
We like Axon and rate it a Two in TheStreet Pro Portfolio, or "stockpile on pullbacks."
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At the time of publication, TheStreet Pro Portfolio was long AXON.
