Why Axon Enterprise, TrueCar, and Chuy's Holdings Jumped Today

The stock market finished the week on a quiet note, with major benchmarks ending the session on Friday close to where they started the day. Investors took a step back from recent enthusiasm about trade hopes in light of comments from President Trump, but the mood of the market was still largely positive. Earnings reports also lent some good cheer to sentiment. Axon Enterprise (NASDAQ: AAXN), TrueCar (NASDAQ: TRUE), and Chuy’s Holdings (NASDAQ: CHUY) were among the top performers. Here’s why they did so well.

Axon fires higher

Shares of Axon Enterprise soared nearly 25% after the maker of Taser stun guns reported strong third-quarter results. Revenue jumped 25% to a record high, and Axon had solid gains in both its Taser segment and its software and sensors business. In particular, the company’s cloud-generated sales rose 42% year over year, and sales of products like body cameras sent sensor segment revenue climbing 45% from year-ago levels. As recurring revenue continues to increase, Axon is making a key transformation away from its original hardware-oriented focus, and that should bode well for the company well into the future.

Image source: Axon Enterprise.

No speed bumps for TrueCar

TrueCar’s stock skyrocketed 31% following the digital automotive marketplace platform provider’s third-quarter financial report. Revenue was actually down 3% from the year-ago period, and adjusted net income came in just barely above break-even levels. However, investors were pleased to see some signs of progress following past challenges, and the company managed to perform toward the upper end of the guidance it had given previously. With a more positive outlook for how the remainder of the year will go, TrueCar is preparing for a bigger rebranding effort that it hopes will change things for the better in the new year and beyond.

Chuy’s looks tasty

Finally, shares of Chuy’s Holdings rose 14%. The Tex-Mex restaurant chain said that revenue was higher by nearly 8% in the third quarter of 2019 compared to the year-earlier period, with comparable-restaurant sales climbing 2.6%. Adjusted net income jumped 18% year over year, and although the company saw slightly fewer customers come into its older restaurants, those who did typically spent more on their meals. Chuy’s also scored a win from falling labor costs. Given how much wage rates and other expenses have hurt the restaurant industry lately, the ability of Chuy’s to make progress fighting those trends is a noteworthy achievement that could keep contributing to profits in future quarters.

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Dan Caplinger owns shares of Chuy’s Holdings. The Motley Fool owns shares of and recommends Axon Enterprise and Chuy’s Holdings. The Motley Fool recommends TrueCar. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.