These 2 growth stocks are the ones to watch after normal Monday hours

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The stock market had a calm day on Monday as investors seemed content to consolidate some of the gains they enjoyed over the past month. Early gains evaporated today, but the market was also able to avoid losses. The Dow Jones Industrial Average (DJINDICES: ^ DJI), the S&P 500 (SNPINDEX: ^ GSPC), and the Nasdaq Composite (NASDAQINDEX: ^ IXIC) changed little at the end of the day.

Index

Daily percentage change (decline)

Daily point change

Dow

(0.04%)

(13)

S&P 500

0.00%

0

Nasdaq

(0.04%)

(7)

Data source: Yahoo! Finance.

Even though the broader market didn’t do much on Monday, a few key companies released earnings reports after the closing bell that led to impressive gains for their respective stocks. Below we’ll take a closer look at why Axon Company (NASDAQ: AXON) and Lucid group (NASDAQ: LCID) were making big gains from their latest financial releases.

Axon tire, brand

Axon Enterprise was up more than 17% on Monday after trading. The maker of tasers and various camera systems and software for law enforcement told investors exactly what they wanted to hear.

Image source: Getty Images.

Axon’s third quarter financial figures were impressive. The company saw record bookings in the quarter, up 54% year-over-year as more customers subscribed to Axon’s software and sensors. In just nine months, Axon has already managed to register more bookings than in 2020; sales increased 39% from the previous year’s levels and recurring revenue grew at an even faster pace of 42%.

Yet it was Axon’s longer-term strategic vision that impressed investors the most. The company nearly doubled its estimate of its total addressable market as it gradually expanded its geographic reach, target customer base, and product lines. In addition, with an estimated penetration of less than 2%, Axon could see its growth accelerate in the years to come.

Stocks consolidated massive long-term gains for much of 2021, but the after-hours gain was enough to push the stock back to all-time highs. This might just be the start if Axon can execute its business strategy well.

Lucid goes ahead

Meanwhile, Lucid Group shares rose nearly 3% after-hours, adding to regular session gains. The electric vehicle (EV) maker reported its results for the first time as a publicly traded company, and investors were generally happy with the progress.

The third quarter financial results were fairly predictable, given Lucid’s pre-production status. The company celebrated the $ 4.4 billion in cash brought in when it went public through a merger with a special-purpose acquisition company, and has used some of that capital to boost its production capacity, prepare vehicle deliveries, establish a global retail network and foster growth in its core businesses. Specifically, the start of production at its Casa Grande, Arizona plant was the first step in achieving a production capacity of 90,000 vehicles per year by 2023, and Lucid generated 13,000 new bookings worth estimated at $ 1.3 billion.

CEO Peter Rawlinson sees big promise for Lucid Air, which won 2022 Motor trend Car of the Year Award. With over 500 miles of range, the vehicle helps allay the concerns of many future electric vehicle drivers about being able to get where they need to go without combustible fuel.

Lucid tries to differentiate himself from You’re here (NASDAQ: TSLA) and other electric vehicle manufacturers with an emphasis on quality. It may take a while for Lucid to build up a critical mass, but investors like the early signs of success they’ve seen from the business so far.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Questioning an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.


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