We would be comfortable with owning these for a long-term holding, but WSP is seeing highly negative momentum, and we would prefer to see it find some level of support before stepping in.
Both names are getting hit on AI fears, and AXON has valuation compression taking place. We do not believe the AI fears for both are warranted, but in the current market, anything that is not AI hardware, or has the slightest potential to be disrupted by AI is not seeing the same capital flows that AI hardware stocks are seeing.
We think AXON looks attractive here, and we would like to see it break above $450. We would like to see WSP find support around the $180 to $190 range.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in AXON.