Only a few weeks after Nasdaq Composite Flipted with a new record of all time, the technology technology index has sunk into a correction (defined as a decline of at least 10%).
The concerns about President Trump's trade wars, weakening consumer confidence and stretched valuations quickly overthrew the feeling of investors. The fears of an imminent recession also swirl on the market.
Although it is frustrating to see the value of your reduction in your portfolio, experienced investors know that stock market sales can create excellent purchasing opportunities because differently promising growth shares tend to be struck by investors precipitating to lock the gains and protect themselves against additional price reductions.
In my opinion, these two stocks present themselves as attractive purchases during this market correction.
Axon Enterprise (Nasdaq: Axon) was one of the most efficient actions in S&P 500 Last year with a 130%gain, and this has also been a big winner in the last decade.
Axon is a leader in law enforcement technology. It manufactures Taser -driving electrical weapons, body cameras and dashboard, and several cloud software that helps the law enforcement organizations to manage files and evidence. The company also invests in advanced artificial intelligence technology (AI) with a new generative AI tool called Draft One which produces the first drafts of police reports based on images of body cam and dashboard cam. The time -made product in time was well received by the police.
The title fell sharply in mid-February to the news that it had dissolved its partnership with the safety of herds for a contractual dispute. However, when the fourth quarter's profits on February 25, Axon Management expressed its optimism as to the possibility that the two companies negotiate a new agreement on new conditions. The better than expected results in the fourth quarter also gave a boost to the stock, but it is still down 25% compared to the top of all time, it recorded earlier this year.
Meanwhile, the wider sale of the market has exerted additional pressure on actions at high prices like Axon, which is negotiated to a Price / sale ratio from 21 and a price / profit ratio greater than 120.
However, even if the American economy continues to weaken, Axon has a number of advantages that make it an attractive purchase at these levels. Firstly, its main customers are local organizations and states of the application of the law, which can be more isolated from economic cycles than private companies. Meanwhile, the emphasis put by the Trump administration on public security and the application of immigration could also promote the company.
With its offers of additional hardware and software, Axon has a solid set of competitive advantages and management provides that revenues increases by 25% between $ 2.55 billion and $ 2.65 billion this year. The company is looking for regular growth, whatever the fluctuations in the stock market, and investors can take advantage of the recent sale to recover shares.
