One of the big winners of the 2024 election? Law enforcement. From the election of pro-law enforcement Donald Trump to state referendums to get tougher on crime, it’s clear that personal defense could play a big role.
It’s also a sign that law enforcement will get more funding for its various activities. That could benefit just a handful of companies that supply law enforcement.
That may be why Axon Enterprise (AXON) may be on a tear. Best known for manufacturing TASER brand stun guns, Axon also provides the hardware and software for body camera footage by law enforcement.
That’s a higher-level service that can mean big contracts with police departments. And that may be helping boost earnings, which are now up 32% over the past year.
Even though shares have rallied substantially, Axon’s increasing profits and high-margin software business is capable of leading shares to new heights.
Action to take: Momentum investors may like shares of Axon here, as the stock is jumping higher and likely has more upside ahead over the coming months. Axon shares do not currently pay a dividend.
For traders, the March 2025 $640 calls, last trading for about $47.70, could see mid-double-digit returns on a further trend higher in shares over the coming months.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.