ClearBridge Investments, an investment management company, released its “ClearBridge Growth Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. US equities significantly rallied in the second quarter, with the S&P 500 returning 10.9%. As the risk-on sentiment took hold, the benchmark Russell Midcap Growth Index advanced a market-leading 18.2%. Growth stocks led across market caps, outperforming their value counterparts. In this environment, the strategy outperformed the benchmark, driven by strong performance from the “mid cap plus” segment that the Strategy focuses on and solid stock selection in IT, industrials, and financials. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its second-quarter 2025 investor letter, ClearBridge Growth Strategy 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 -1.34%, and its shares gained 95.99% of their value over the last 52 weeks. On September 16, 2025, Axon Enterprise, Inc. (NASDAQ:AXON) stock closed at $750.67 per share, with a market capitalization of $58.93 billion.
ClearBridge Growth Strategy stated the following regarding Axon Enterprise, Inc. (NASDAQ:AXON) in its second quarter 2025 investor letter:
“The purchases of Howmet Aerospace and Axon Enterprise, Inc. (NASDAQ:AXON) complement existing defense holding L3Harris Technologies, adding exposure to original equipment and aftermarket aerospace and public safety end markets. Both are dominant players in their respective industries with significant runway for growth and margin expansion ahead.”
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 second quarter, Axon Enterprise, Inc. (NASDAQ:AXON) generated $669 million in revenue, representing a 33% increase year-over-year and marking its 14th consecutive quarter of revenue growth exceeding 25%. While we acknowledge the potential of Axon Enterprise, Inc. (NASDAQ:AXON) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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