As the Trump administration’s priorities continue to take hold, its unabashedly pro-law enforcement stance is igniting fresh optimism among investors. With a renewed focus on public safety and American-made innovation, companies supplying cutting-edge policing technologies could see significant windfalls. While initiatives like DOGE (the Department of Government Efficiency) grab headlines, the real investment opportunity lies could in tangible tools: less-lethal devices, AI-driven software, and data analytics poised to reshape how America’s police operate. Here’s why Wrap Technologies, Axon Enterprise, and SoundThinking stand out as potential picks for your portfolio—and what makes them tick under this new political landscape.
Wrap Technologies: The De-Escalation Disruptor
Leading the charge is Wrap Technologies (NASDAQ: WRAP), a Virginia-based innovator betting big on de-escalation and American manufacturing—two themes likely to resonate under Trump’s “Buy American” ethos. At the heart of its offerings is BolaWrap, a handheld device that fires a Kevlar tether to restrain individuals from a distance, avoiding pain or injury. Since its 2018 debut, Wrap has equipped over 1,000 U.S. law enforcement agencies and expanded to over 40 countries. Real-world testimonials underscore its value: a Northeast police chief hailed it for resolving a tense encounter “without any use of force,” while a Midwestern officer praised the “window of time to safely manage” a mental health crisis.
Wrap’s ambitions go beyond hardware. The company recently rolled out its Managed Safety and Response (MSR) program–a full-service, managed solution that equips departments with Wrap’s made-in-America tech stack while integrating ongoing support and training for police departments. This move underscores the importance of not only providing departments with innovative tools, but ensuring they have the training and support needed to deploy them effectively. The program was first piloted in Virginia, following a partnership in which Wrap moved its manufacturing to the state, garnering $4.1 million in state support, establishing 126 new jobs, and positioning the Commonwealth as a 21st century leader in public safety innovation.
At $1.94 per share as of February 27, 2025, Wrap is a bargain for growth investors. The company slashed operational costs by 22% year-over-year and secured $5.8 million in private investment, signaling financial discipline and scalability. As departments face pressure to reduce injuries and liability—evidenced in part by NYPD’s record-high officer injuries in 2024—Wrap’s focus on safer compliance tools could capture market share from pain-centric rivals.
Why it might be a buy: Wrap’s relatively low valuation, domestic production, and de-escalation ethos position it as a sleeper hit if Trump’s policies funnel funds to innovative, cost-effective policing solutions.
Axon Enterprise: The Dominant Incumbent
Axon Enterprise (NASDAQ: AXON) remains the undisputed heavyweight, with its stock soaring to $568.84 by February 2025—a 37% year-to-date gain. Known for Tasers and body cameras, Axon posted a Q3 2024 revenue surge of 32% to $544 million, with Taser sales up 36% to $221.7 million and cloud services jumping 46%. Its subscription model boasts a 123% net revenue retention rate, cementing a sticky, high-margin business that thrives on long-term contracts. New offerings like the TASER 10, with advanced range and precision, and AI-powered real-time analytics keep Axon at the forefront as agencies modernize.
Yet, cracks in its armor are emerging that are worth paying attention to. Studies, including a 2019 APM report, peg Taser failure rates at 20-40%, with 15% of uses escalating to higher force when shocks fail—a risk in an era of tightening use-of-force policies. Axon’s premium pricing (P/E ratio of 126.73x) and closed ecosystem also frustrate budget-conscious departments, opening the door for challengers. Still, with a $37.73 billion market cap and entrenched relationships, Axon is primed to capitalize on any Trump-driven funding boost—think federal grants or state-level allocations for law enforcement tech.
Why it might be a buy: Axon’s scale, innovation, and recurring revenue make it a blue-chip bet for stability and growth, though its lofty valuation demands confidence in sustained policy tailwinds.
SoundThinking: The Data-Driven Dark Horse
SoundThinking, Inc. (NASDAQ: SSTI), formerly ShotSpotter, rounds out the trio with a quieter but compelling story. Its acoustic sensor network detects gunfire in real time, pinpointing locations to slash police response times—a godsend for urban crime hotspots. Deployed in over 100 U.S. cities, SoundThinking boasts a 111% revenue retention rate (per 2019 data, the latest full-year available), reflecting stickiness among cash-strapped municipalities.
Trading at $19 per share in early 2025, it’s a lower-cost entry point than Axon, with a niche in situational awareness that complements hardware-heavy peers.
While growth has been modest—analysts project single-digit revenue gains—SoundThinking’s potential shines in a Trump-led push for proactive crime fighting. Its tech has logged over 500,000 gunshot alerts since inception, per company reports, making it a data-driven ally for departments eyeing rapid-response upgrades. Smaller agencies, often overlooked by bigger players, could flock to SoundThinking if federal dollars trickle down via block grants or anti-crime initiatives.
Why might be a buy: SoundThinking’s affordability and focus on prevention offer speculative upside, especially if Trump’s law-and-order rhetoric translates to urban policing investments.
The Investor Playbook
The Trump administration’s pro-law enforcement tilt, paired with a manufacturing renaissance, could supercharge these companies. Wrap Technologies is the scrappy upstart—low-priced, innovative, and aligned with de-escalation trends that resonate with communities and policymakers alike. Axon Enterprise delivers proven scale and reliability, a premium pick for those betting on entrenched winners. SoundThinking, meanwhile, is the wildcard—data-savvy and budget-friendly, with room to grow as cities prioritize precision.
Key catalysts to watch: federal budget allocations, state-level adoption rates, and public sentiment on use-of-force. Wrap’s Virginia hub could become a national model, Axon’s contracts might balloon with renewed funding, and SoundThinking could ride a wave of urban safety grants.
Risks remain—policy shifts could stall, or DOGE’s efficiency drive might squeeze budgets—but the upside potential is tantalizing.
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