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Konica Minolta (OTC:KNCAY) Stock, Option Chain

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

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.
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:
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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>

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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>

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