Axon Enterprise (AXON) Cooled Down After Years of Outperformance

Carillon Tower Advisers, an investment management company, released its “Carillon Eagle Mid Cap Growth Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the third quarter, the equity markets continued their rally, fueled by enthusiasm for AI, limited evidence of inflationary effects from tariffs, and expectations for further interest rate cuts from the U.S. Federal Reserve. Mid-cap stocks also maintained their positive gains during the quarter. The Russell Midcap Growth Index (up 2.78%) underperformed the Russell Midcap® Value Index (up 6.16%) in the quarter. The letter further shared the firm’s detailed views on Cyclicals, Healthcare, Information Technology, Financials, and Consumer sectors. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, Carillon Eagle Mid Cap Growth Fund highlighted stocks such as Axon Enterprise, Inc. (NASDAQ:AXON). Axon Enterprise, Inc. (NASDAQ:AXON) manufactures conducted energy devices (CEDs) under the TASER brand. The one-month return of Axon Enterprise, Inc. (NASDAQ:AXON) was -30.52%, and its shares lost 17.01% of their value over the last 52 weeks. On November 13, 2025, Axon Enterprise, Inc. (NASDAQ:AXON) stock closed at $524.60 per share, with a market capitalization of $41.396 billion.

Carillon Eagle Mid Cap Growth Fund stated the following regarding Axon Enterprise, Inc. (NASDAQ:AXON) in its third quarter 2025 investor letter:

“Axon Enterprise, Inc. (NASDAQ:AXON) provides law enforcement and security technology solutions. After an impressive run of outperformance over the past few years, the company’s stock lagged despite posting another quarter of robust growth and positive momentum in its new product development. Axon remains intensely focused on the development of innovative solutions to address all aspects of the law enforcement process and has made significant strides recently in the emerging areas of drones and potentially transformational AI-enabled solutions. In addition, Axon continues to expand its offerings outside of its traditional law enforcement area and has recently highlighted the significant opportunity that could lie in these new markets.”

Jim Cramer Notes Axon (AXON) is a “New High Natural”

Axon Enterprise, Inc. (NASDAQ:AXON) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 62 hedge fund portfolios held Axon Enterprise, Inc. (NASDAQ:AXON) at the end of the second quarter, which was 61 in the previous quarter. In the third quarter, Axon Enterprise, Inc. (NASDAQ:AXON) generated $711 million in revenue, representing a 31% increase year-over-year.  While we acknowledge the risk and potential of Axon Enterprise, Inc. (NASDAQ:AXON) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Axon Enterprise, Inc. (NASDAQ:AXON) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Axon Enterprise, Inc. (NASDAQ:AXON) and shared the list of best QQQ stocks to buy according to Wall Street analysts. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.