For the Fort Worth Police Department, price wasn't the only consideration. "Only certain companies can be considered, as we have specific needs in reference to the storing of criminal evidence," Officer Tamara Pena, a spokeswoman for the department, said.

Body camera sales to law enforcement authorities are surging after a rash of shootings by police across the country and subsequent protests. The Justice Department plans to make $75 million in federal grants available to provide as many as 50,000 cameras to local police departments. The flurry of activity has raised questions about how to upload and securely store the huge amounts of digital video data produced by police officers nationwide.

?With contracts already in place to provide stun guns to most of the 18,000-plus police departments in the U.S., Taser has also grown to be a leader in the body camera and video storage market, a promising way to diversify given litigation the company has faced over the lethal use of its stun guns.

Eoin Treacy's view

Colt Defense’s bankruptcy highlights how companies that fail to innovate get left behind. Taser’s lucrative contracts with police forces, under pressure to deploy body cameras after a raft of police brutality incidents, represent a powerful catalyst for outperformance. 

In such a niche sector, where integrity of the chain of custody for evidence is essential for future prosecutions, it is questionable how much competition the company will encounter. That is at least until companies like Amazon produce a dedicated product for police forces. 

The share remains in a steep uptrend and a break in the progression of higher reaction lows, currently near $30, would be required to question medium-term scope for additional upside.