Why TASER International (TASR) Stock Is Gaining Today

NEW YORK (TheStreet) -- TASER International (TASR) was gaining 7.7% to $18.02 Thursday after announcing multiple orders of its TASER brand Smart Weapons.

Included in the list of orders is an order for 300 TASER X26P Smart Weapons from the Cleveland Police Department. Other orders include an order for 129 X2s from the Florida Department of Law Enforcement, and an order for 126 X2s from the North Carolina Highway Patrol.

All of the orders were placed and are expected to ship in the third quarter.

Shares of TASER International recently gained due to interest in body-mounted cameras for police forces following the civil unrest in Ferguson, MO.

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TheStreet Ratings team rates TASER INTERNATIONAL INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate TASER INTERNATIONAL INC (TASR) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 1.4%. Since the same quarter one year prior, revenues rose by 15.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • TASR's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.54, which clearly demonstrates the ability to cover short-term cash needs.
  • Compared to its closing price of one year ago, TASR's share price has jumped by 31.45%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • The gross profit margin for TASER INTERNATIONAL INC is rather high; currently it is at 65.42%. Regardless of TASR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, TASR's net profit margin of 10.44% compares favorably to the industry average.
  • TASER INTERNATIONAL INC's earnings per share declined by 12.5% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, TASER INTERNATIONAL INC increased its bottom line by earning $0.34 versus $0.27 in the prior year. For the next year, the market is expecting a contraction of 5.9% in earnings ($0.32 versus $0.34).
  • You can view the full analysis from the report here: TASR Ratings Report

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