Taser International (TASR) Stock is Today's 'Chart of the Day'

NEW YORK (TheStreet) -- Taser International (TASR) shares are up 2.19% to $33.57 in afternoon trading on Tuesday and is the subject of today's Trifecta Stocks 'Chart of the Day' analysis.

Shares of the nonlethal law enforcement weapons manufacturer have traditionally spiked during times of civil unrest and the stock has performed well since reaching its bottom in March.

While the stock has performed well this year, analysts have a mean price target of $32 per share with a high of $35 per share and a low of $28 per share.

Insight from TheStreet's Research Team:

Here is what Trifecta Stocks Bryan Ashenburg and Bob Lang had to say about what the stock's chart can tell you about its future performance.

Taser International develops, manufactures and sells conducted electrical weapons (tasers) designed for use in law enforcement, military, corrections and personal defense.

TASR has been one of the best performing names since the beginning of the year, but specifically it has been on fire since bottoming in early March. Making a series of higher highs and higher lows, the stock is up nearly 65% on some pretty decent turnover along the way. There are a couple of gaps in the chart that are supportive price zones.

The recent pullback has created a small downward channel, but last week, TASR burst out on increasing volume. Notable is the move on Friday and Monday on a very weak market tape, which you can see in the good Relative Strength (arrow). The Moving Average Convergence Divergence is about to flash a buy signal here as well on a crossover.

DISCLOSURE: Trifecta Stocks has no position in TASR. This Alert is a technical analysis of the company's chart, and we are not taking any action in the stock at this time.

Separately, 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 several positive factors, 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, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."

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

  • The revenue growth came in higher than the industry average of 3.4%. Since the same quarter one year prior, revenues rose by 23.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the 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 3.69, which clearly demonstrates the ability to cover short-term cash needs.
  • TASER INTERNATIONAL INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, TASER INTERNATIONAL INC increased its bottom line by earning $0.36 versus $0.34 in the prior year. This year, the market expects an improvement in earnings ($0.51 versus $0.36).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Aerospace & Defense industry. The net income increased by 112.5% when compared to the same quarter one year prior, rising from $3.39 million to $7.21 million.
  • The gross profit margin for TASER INTERNATIONAL INC is rather high; currently it is at 67.38%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 16.09% is above that of the industry average.
  • You can view the full analysis from the report here: TASR Ratings Report

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