Analysis: AXON

In our follow-up comments earlier today on Axon Enterprise's (AXON) March-quarter results we boosted our price target as well as our compelling buy levels. However, despite many in the Wall Street community raising their price targets, AXON shares are trading off today, likely reflecting the conservative guidance offered by the company. As we explained, though, there are several levers on both the revenue and margin side that should ultimately drive Axon's earnings power higher over the medium to longer-term.

With that in mind, we are going to use today's post-earnings misperception to add to our Action Alerts PLUS position. The positive side to all of this is it will likely help flush out "hot money" traders and boost the ownership among longer-term horizon investors like us. And it's for situations like this that we have boosted our cash position in the portfolio -- to opportunistically add to existing positions at times like this.

After you receive this Alert, we will buy 155 shares of AXON at or near $190. Following the trade, AXON shares will account for roughly 3.35% of the portfolio.

(Please note that we are looking to execute these trades at or near the share price mentioned above. Once the trade is completed, subscribers can see the trade's executed price here. Be sure to toggle the chart to sort by Purchase Date.)