Stock Tip Tuesday

I hear a winner 👂

Author

Sean Conroy
July 23, 2024

Stock Tip Tuesday


Axil brands (đŸ‡ș🇾: $AXIL) 

Happy Leonardo Dicaprio GIF by Jordan Belfort

THE PICK
I hear a winner 👂

Welcome back to another stock tip Tuesday. I am excited about this one.
Axil Brand, based in Los Angeles, operates in the hearing protection business. At first I was unsure of what even the hearing protection industry was. However as I took a closer look I was excited.

Axil’s goal is to combine advanced technology with hearing protection so you can have a device like an Air pod, but with the added bonus of knowing you are not harming your hearing if you were to do any loud or potentially disruptive task.
The company also brands itself as an everyday wear product. The ear buds could be used in the gym, a substitute for hearing aids, in a club for load music, shooting, working on a building site or even driving a motorcycle.

If anybody has been around a building site you know that shit is loud. So why wouldn’t you want to be able to listen to some tunes as you work. Knowing your ears are protected, instead of using massive ear muffs ?

Now to hit you with some straight facts and fundamentals for this tasty company. 

The stock is currently trading at $6.93 and has a market cap of $42 million. One of the most eye catching and exciting things about Axil is the company’s revenue over the last 12 months, totaling $27.8 million. Highlighting an impressive 62% annual growth and just shows the company is flying !

However, what really reeled me in was the gross margin of 74.2% when they sell one of their products. And it’s not because they are extremely upmarket either. They just have nailed the pricing point, which is roughly just below air pods.

THE PICK
Branding

A lot of the time with these products partnerships are often crucial for building up the brand, putting it on display in the public eye and showing it’s a credible business and not some dog shit product.

Axil have done a tremendous job at getting out there are securing some major deals. Firstly, the company agreed a 5 year deal with USA shooting. This couldn’t come at a better time for Axil. With the Paris Olympic games around the corner the exposure will be unmatched. 

“We couldn’t be more thrilled about our partnership with Axil, a company that not only leads in innovation but shares in our deep commitment to excellence and athlete safety. As we gear up for Paris 2024 and beyond, securing the best in auditory protection is crucial.  AXIL’s superior technology not only safeguards our athletes’ hearing but enhances their focus and precision, essential elements in the shooting sports.  This collaboration is more than a sponsorship; it’s a strategic alliance that elevates our athletes’ capabilities and underscores our relentless pursuit of excellence across all facets of our sport.”

Kelly Reisdorf, CEO of USA Shooting

Another massive deal these guys got over the line was with Racing Electronics. They are a merchandiser for NASCAR, and have agreed to sell AXIL’s NASCAR-Branded products track side at the racing events. Once again expanding the companies name and getting the product out there to another target group.

Finally, the group also tactically teamed up with Kinsey. A nationwide leading distributor in outdoors wear. The company has corporate businesses in all 50 states and should grow the business exponentially.

Summary ⭐

I really like this pick and was actually shocked at how low the stock was. I believe it has huge growth in its future and at $6.93, it could be a very nice investment.

Thank you
That’s All Folks

Thank you for reading. Like usual. Not financial advice.

We don’t own stock in Axil. Full disclaimer here

Cheers,