AXON Fell 16% In A Month. What To Do Now?
Axon Enterprise (AXON) stock is down 15.8% in 21 trading days. Already own the stock or planning to buy? You might want to re-consider based on the valuation as the stock still looks expensive. Consider the following data:
- Size: A $57 Bil company with $2.4 Bil in revenue currently trading at $730.16.
- Fundamentals: Last 12 month revenue growth of 32.4% and operating margin of -0.06%.
- Liquidity: Has Debt to Equity ratio of 0.0 and Cash to Assets ratio of 0.4
- Valuation: Currently trading at P/E multiple of 174.5 and P/EBIT multiple of 208.1
- Has returned (median) 68.9% within a year following sharp dips since 2010. See AXON Dip Buy Analysis.
While we like to buy dips if the fundamentals check out – for AXON, see Buy or Sell AXON Stock – we are wary of falling knives. Specifically, it is worth trying to answer if things get really bad, and AXON drops another 20-30% to $511.11 levels, will we be able to hold on to the stock? What is the worst case scenario? We call it downturn resilience.
Below is a deep dive into Axon Enterprise (AXON) downturn resilience – specifically, its performance vs the market during past crises? Turns out, the stock has fared worse than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.
Below are the details, but before that, as a quick background: AXON provides conducted energy devices and hardware-software solutions for law enforcement to capture, store, manage, share, and analyze digital evidence globally.
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2022 Inflation Shock
- AXON stock fell 58.5% from a high of $203.51 on 11 February 2021 to $84.37 on 11 May 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 1 March 2023
- Since then, the stock increased to a high of $870.97 on 7 August 2025 , and currently trades at $730.16
| AXON | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -58.5% | -25.4% |
| Time to Full Recovery | 294 days | 464 days |
2020 Covid Pandemic
- AXON stock fell 40.8% from a high of $88.90 on 19 February 2020 to $52.61 on 18 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 1 June 2020
| AXON | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -40.8% | -33.9% |
| Time to Full Recovery | 75 days | 148 days |
2018 Correction
- AXON stock fell 46.9% from a high of $74.89 on 23 July 2018 to $39.74 on 24 December 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 26 November 2019
| AXON | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -46.9% | -19.8% |
| Time to Full Recovery | 337 days | 120 days |
2008 Global Financial Crisis
- AXON stock fell 85.8% from a high of $18.81 on 9 October 2007 to $2.68 on 20 November 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 20 February 2014
| AXON | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -85.8% | -56.8% |
| Time to Full Recovery | 1918 days | 1480 days |
Worried that AXON could fall much more? You could take a look at the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.