AAXN - The Stealthy SaaS Stock I'd Buy Now (if I Didn't Already Own So Much)
At first blush, Axon Enterprise (NASDAQ: AAXN) is just a simple manufacturer. Previously known as TASER International, the company makes stun guns and body cameras for police forces around the world. Dominance in the market is a strength. But if it just produced physical goods, Axon would eventually become a commodity player.
But scratch the surface and you'll see Axon is actually a tech stock. Specifically, its move into software as a service (SaaS) has drastically changed business fundamentals.
It appears, however, that the market wasn't too impressed with second-quarter results. Shares now trade almost 25% below mid-June highs. That would leave me licking my chops to buy more of the stock...if I didn't already own so much. Here's why.