This article looks at the 10 best gun stocks to buy in 2025.

America has a deep connection to guns, dating back to its earliest days. The Second Amendment of the Constitution guarantees citizens the right to bear arms. According to a Pew Research Center survey in 2023, about four in ten adults in the country say they live in a household with guns, while 32% personally use one.

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While there is mixed opinion over the right to own a gun and the laws that regulate its use in modern times, most gun owners consider the weapon an integral part of their freedom. About 72% cite protection as the major reason behind owning a gun. Others own the weapon for varying reasons, including gun collection, hunting, sports shooting, and job purposes.

While firearm purchases have been on a steady decline since the pandemic peak, the demand is still reasonably high. The United States is home to a thriving firearms industry that generates billions in revenue every year and provides employment to thousands of Americans. According to The Firearm Industry Trade Association, the sector contributed $90 billion toward the national output in 2023. This was 371% higher than the levels in 2008.

American companies that manufacture and sell firearms, ammunition, and hunting equipment had employed nearly 155,000 people, as of 2023. The market has also created thousands of jobs indirectly in the ancillary and supplier industries, resulting in over 384,000 jobs tied to the sector. Combined, these workers earn around $25.98 billion in wages.

While final figures for gun sales in 2024 are yet to be known, the FBI’s database recorded 5.5 million guns being bought by Americans during the first four months of the year. This was a slight dip year-over-year from 2023. California, Florida, and Texas represented 22% of gun purchases between January and April.

During his election campaign, Trump vowed to defend gun rights and oppose any firearm limits. After being elected President, the 78-year-old signed an executive order aimed at reversing Biden’s actions on the guns. On February 7, the U.S. president asked the Department of Justice to review regulations drafted by the previous administration to look for any ‘ongoing infringements’ of the Second Amendment.

Gun stocks surged last year in July, following the assassination attempt on Trump. The demand for guns and ammunition often sees an uptick after a law and order incident, or when there is chatter about a change in laws that could limit their availability. With that said, let’s now shift focus to the best gun stocks to buy in 2025.

Methodology

We scanned Insider Monkey’s database of 900 hedge funds for the third quarter of 2024 to identify gun and ammunition companies. From there, we picked 10 companies with the highest number of hedge funds having stakes in them. Since there are few pure-play gun and ammunition stocks, we have also included sports and outdoor recreation companies selling shooting products in our list.

The best gun stocks to buy are ranked in ascending order by the hedge fund holders in each company. When two or more stocks were tied on the number of hedge fund holders, we outranked one over the other on market capitalization.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

10 Best Gun Stocks to Buy in 2025

10. AMMO, Inc. (NASDAQ:POWW)

Number of Hedge Fund Holders: 6

AMMO, Inc. (NASDAQ:POWW) designs, produces and markets ammunition for law enforcement and military agencies, recreational shooters, hunters, and individuals requiring self-defense. It is one of the best gun stocks to buy in 2025.

As of the close of the day on February 7, the stock’s share price had surged by over 61% year-to-date following the company’s announcement to sell its ammunition manufacturing assets to Olin’s Winchester for $75 million. The transaction is expected to close during the second calendar quarter of 2025 and is in line with AMMO, Inc. (NASDAQ:POWW)’s vision to prioritize its high-margin e-commerce platform.

AMMO, Inc. (NASDAQ:POWW) owns GunBroker.com, which is one of the world’s largest online marketplaces for firearms and shooting accessories. The company is confident that the sale of its manufacturing assets will allow AMMO to further scale and grow its website and capitalize on the expanding online marketplace for firearms and shooting sports products.

On November 26, AMMO, Inc. (NASDAQ:POWW) received a notification of deficiency from NASDAQ over the delay in filing its quarterly report for the quarter ended September 30, 2024. The company attributed the delay to an ongoing investigation by a law firm appointed by a special committee of AMMO’s board of directors. It is working diligently to file the results as soon as practical to regain compliance with the listing rules.

According to Insider Monkey’s database for Q3 2024, 6 hedge funds held a stake in the company, down from 7 at the end of the second quarter. First Eagle Investment Management was the largest investor in AMMO, Inc. (NASDAQ:POWW), with shares valued at over $2.1 million, as of September 30, 2024.

9. Big 5 Sporting Goods Corporation (NASDAQ:BGFV)

Number of Hedge Fund Holders: 7

Big 5 Sporting Goods Corporation (NASDAQ:BGFV) is a sporting goods retailer headquartered in El Segundo, California. The company has over 400 stores across the United States. Its product mix includes athletic shoes, accessories, apparel, and equipment for outdoor activities, team sports, and other recreational activities. The company also sells firearm products for shotgun and rifle services; however, these account for a meager portion of its revenue.

On January 14, Big 5 Sporting Goods Corporation (NASDAQ:BGFV) declared financial results for the fourth quarter and full year 2024. It generated $181.6 million in net sales during the quarter, down 7.5% from last year, with same-store sales declining 6.1% year over year. Net sales for the full year were reported at $795.5 million, compared to $884.7 million for fiscal 2023. Same-store sales were down 9.4% from last year, while merchandise margins decreased by 34 basis points.

Big 5 Sporting Goods Corporation (NASDAQ:BGFV) is expected to announce earnings results for the quarter and full year in late February. While the current climate presents challenges, the company is striving to optimize operations. As part of these efforts, BGFV closed several stores in 2024 to cut costs.

On December 19, Big 5 Sporting Goods Corporation (NASDAQ:BGFV) also renewed and extended its credit facility with the Bank of America. The loan agreement, which runs till December 2029, will offer a secured revolving credit facility of up to $150 million. The company will also be able to request additional aggregate availability, which the bank will have the option to provide.