5 Best Industrial Stocks to Buy in 2026

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1. Axon Enterprise, Inc. (NASDAQ:AXON)

Stock Upside Potential: 74.45%

Number of Hedge Fund Holders: 68

Axon Enterprise, Inc. (NASDAQ:AXON) is one of the best industrial stocks to buy in 2026. On April 15, TD Cowen reiterated its Buy rating on Axon Enterprise, Inc. (NASDAQ:AXON) and set a $825 price target. The positive stance comes amid expectations that the company is poised to deliver strong revenue growth, topping the 30% estimate.

The research firm is optimistic about the company’s growth metrics and believes the current guidance is conservative. The optimism stems from City Council checks showing strong adoption of the company’s new products. According to the research firm, there is significant uptake of AI, ALPR, Drones, and Fusus.

While Axon Enterprises has delivered 33% revenue growth over the past 12 months, TD Cowen sees the company as the best idea in the sector. That’s in part because of the highly durable end market, high-growth profile, and AI product growth.

RBC Capital analyst David Paige shares similar sentiments, reiterating an outperform rating on Axon Enterprises. According to the analyst, the company is well-positioned to achieve $6 billion in revenue and 28% EBITDA margins by fiscal 2028.

Axon Enterprise, Inc. (NASDAQ:AXON) develops technology and weapons for law enforcement, military, and commercial security, aiming to reduce gun-related deaths through non-lethal solutions. Their ecosystem includes TASER energy weapons, body-worn cameras drones, and the Evidence.com cloud platform.

While we acknowledge the potential of AXON to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AXON and that has 100x upside potential, check out our report about the cheapest AI stock.

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