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.
Audrey Snider-Bell/Shutterstock.com
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.
8. American Outdoor Brands, Inc. (NASDAQ:AOUT)
Number of Hedge Fund Holders: 7
American Outdoor Brands, Inc. (NASDAQ:AOUT) provides product solutions for outdoor activities, such as hunting, shooting, cooking, camping, and fishing, as well as for personal security and defense. The company offers products under various brands, including BOG, BUBBA, Caldwell, Frankford Arsenal, and Tipton, among others.
On January 21, Caldwell, a shooting accessory brand within American Outdoor Brands, Inc. (NASDAQ:AOUT), unveiled a new target system for shotgun shooters, called the ClayCopter. The new system offers shooters the opportunity to experience a new way to clay, through a powerful, handheld launcher that shoots one or two biodegradable discs to distances of up to 100 yards.
For over a century and a half, shotgun sports enthusiasts used traditional clay targets to hone their shooting skills. These targets typically require heavy throwers that are difficult to transport and store. The ClayCopter system is set to make the shooting experience easier and fun for shooters to test their limits.
Following the impressive launch of new products at the SHOT Show last month, Lake Street raised American Outdoor Brands, Inc. (NASDAQ:AOUT)’s price target to $20 from $14, amid confidence in the company’s strategy and improved outlook for the year ahead.
American Outdoor Brands, Inc. (NASDAQ:AOUT)’s financial performance also remained robust. During its Q2 2025 earnings call on December 5, the company reported net sales of $60.2 million, up 4% year-over-year, with international sales growing 15% compared to last year. The company also delivered a 43% increase in adjusted EBITDA. According to Insider Monkey’s database for Q3 2024, 7 hedge funds held a stake in the company, making it one of the best gun stocks to buy now.
7. Smith & Wesson Brands, Inc. (NASDAQ:SWBI)
Number of Hedge Fund Holders: 15
Smith & Wesson Brands, Inc. (NASDAQ:SWBI) is a firearm manufacturing company headquartered in Maryville, Tennessee. It is one of the leading makers of long guns, handguns, rifles, and other shooting equipment. The company has been operating since 1852 and sells its products to various customers, including competitive shooters, firearm enthusiasts, security agencies, individuals desiring personal protection, sportsmen, and hunters.
On December 5, Smith & Wesson Brands, Inc. (NASDAQ:SWBI) declared financial results for the second quarter of fiscal 2025. It reported net sales of $129.7 million for the quarter, up 46.8% sequentially and 3.8% from last year, driven by the strength of the new Bodyguard 380 pistol and lever-action rifle. Gross margin stood at 26.6%, compared to 25.4% in the prior year’s quarter. GAAP net income for the quarter was $4.1 million, or $0.09 per diluted share, compared with $2.5 million, or $0.05 per diluted share, in Q2 2024.
However, the results came below Smith & Wesson Brands, Inc. (NASDAQ:SWBI)’s expectations as demand for firearms normalized late in the quarter. Due to inflation-driven pressures on demand, the company expects the top line to be between 10% and 15% lower year-over-year for the third fiscal quarter. SWBI’s share price is down 24% since the announcement of a grim forecast for Q3.
Despite a challenging environment, there are still enough reasons to remain bullish on the stock as it continues to outperform the market. Smith & Wesson Brands, Inc. (NASDAQ:SWBI) has been encouraged by the successful launch of new products, which represented 44% of the company’s sales in the recent quarter. Moreover, the firm authorized a new $50 million share repurchase program, reiterating its commitment to shareholder returns.
Wall Street analysts have a consensus Buy rating for SWBI and anticipate a 21% uptick, on average, in its share price. According to Insider Monkey’s database for Q3 2024, 15 hedge funds held a stake in the company, making it one of the best gun stocks to buy.
6. Sturm, Ruger & Company, Inc. (NYSE:RGR)
Number of Hedge Fund Holders: 15
Sturm, Ruger & Company, Inc. (NYSE:RGR) is an American firearms company with a diverse portfolio of products, mainly serving three product lines – pistols, rifles, and revolvers. The company primarily sells its products to domestic customers but also sells weapons to law enforcement agencies. It is among the best gun stocks to buy in 2025.
On January 17, the company announced the appointment of Todd W. Seyfert as its new President and CEO, effective March 1, 2025. The Board is confident that given Todd’s distinguished track record of driving profitable corporate growth and operational excellence, his appointment will further strengthen Sturm, Ruger & Company, Inc. (NYSE:RGR)’s market position by delivering long-term value to customers, shareholders, and employees.
During its recent Q3 2024 earnings call on October 31, Sturm, Ruger & Company, Inc. (NYSE:RGR) reported a 5.6% decline in net sales in the first nine months of fiscal 2024. Diluted earnings per share for this period of $1.15 per share were also down from $2.13 per share during the corresponding period in 2023.
Despite a dip in sales, Sturm, Ruger & Company, Inc. (NYSE:RGR) has showcased resilience in a challenging market impacted by a competitive promotional environment and rising fixed costs. The company maintains a strong financial position with no debt and ended the quarter with $96 million in cash and short-term investments. Moreover, it returned $39.3 million to shareholders during the first nine months of 2024, which included $10 million in dividends.
Sturm, Ruger & Company, Inc. (NYSE:RGR) is also encouraged by the performance of its new product launches, which accounted for 31% of all firearm sales between January and September 2024. According to Insider Monkey, 15 hedge funds had investments in the company as of Q3 2024.
5. National Presto Industries, Inc. (NYSE:NPK)
Number of Hedge Fund Holders: 16
National Presto Industries, Inc. (NYSE:NPK) started in 1905 by producing pressure canners for home use, before venturing into other cooking appliances and, later, defense and safety products. The company is divided into three business segments – houseware appliances, defense, and safety, which provides it a significant edge; if one market is down, the other may go up.
National Presto Industries, Inc. (NYSE:NPK) is an important player in America’s defense industry. It is a major supplier of 40mm ammunition and cartridge cases to the Department of Defense (DoD). Last year in May, the company won a five-year contract valued at $818.9 million from the U.S. Army for 40mm M918E2 High-Velocity Target Practice cartridges. Spectra Technologies, LLC, a subsidiary of NPK’s defense holding company, National Defense Corporation, also received a follow-on subcontract worth $48 million from Raytheon Missiles & Defense to produce warheads for the TOW 2B missile.
National Presto Industries, Inc. (NYSE:NPK) is one of the best gun stocks to buy, with 16 hedge funds having a stake in the company, according to Insider Monkey’s database for Q3 2024. This is an improvement from 14 hedge funds at the end of the second quarter. Renaissance Technologies is the largest investor in NPK, with holdings valued at over $17.3 million, as of September 30, 2024.
Investor sentiment has been strengthened after strong results during the third quarter of fiscal 2024. National Presto Industries, Inc. (NYSE:NPK) reported net sales of $91.8 million, up 10.4% from last year, driven by an 8.9% increase in defense segment shipments from backlog and a 15.2% surge in home appliances revenue. Net earnings were posted at $8.08 million, up from $7.02 million during the same period last year. Net EPS was logged at $1.13, increasing 14% year-over-year.
4. Sportsman’s Warehouse Holdings, Inc. (NASDAQ:SPWH)
Number of Hedge Fund Holders: 18
Sportsman’s Warehouse Holdings, Inc. (NASDAQ:SPWH) is an outdoor sporting goods retailer that sells footwear, apparel, and gear for enthusiasts of shooting, hunting, fishing, camping, and other outdoor activities.
While many other players in the industry are pivoting away from firearms, Sportsman’s Warehouse Holdings, Inc. (NASDAQ:SPWH) is doubling down on the category to further solidify its position in the market. It is benefitting from increased demand in violence-stricken regions both within and outside the United States.
Moreover, Sportsman’s Warehouse Holdings, Inc. (NASDAQ:SPWH)’s position is also strengthened by its domestic supply chain, which limits its exposure to tariffs and has the potential to improve the company’s margin further as American consumers increasingly opt for private-label offerings over leading brands.
SPWH is also seeing growth in its fishing and camping department, and gift bar category, which includes electronics, optics, and cutlery. The current macroeconomic environment presents significant growth potential for the company. There is optimism about disposable incomes rising under the Trump administration, with the psychological uplift likely to drive near-term demand.
While the overall retail landscape does present challenges, Sportsman’s Warehouse Holdings, Inc. (NASDAQ:SPWH) has been taking active measures to stabilize by curtailing capital expenditures and implementing cost-cutting initiatives to ensure positive free cash flow. The company is prioritizing debt repayment as it strives to maintain a strong balance sheet.
Wall Street analysts are bullish on the stock with a consensus Buy rating and an average share price upside potential of 76%. According to Insider Monkey’s database for Q3 2024, 18 hedge funds held a stake in SPWH, making Sportsman’s Warehouse Holdings, Inc. (NASDAQ:SPWH) one of the best gun stocks to buy in 2025.
3. Academy Sports and Outdoors, Inc. (NASDAQ:ASO)
Number of Hedge Fund Holders: 25
Academy Sports and Outdoors, Inc. (NASDAQ:ASO) is an American sporting goods and outdoor recreation retailer, headquartered in Katy, Texas. Its outdoor division sells products related to camping, fishing, and hunting (which include firearms and ammunition, among others). The sports and recreation division offers sports and fitness equipment, accessories, and nutrition supplies. The company also has apparel and footwear divisions.
On December 10, Academy Sports and Outdoors, Inc. (NASDAQ:ASO) announced financial results for the third quarter of fiscal 2024. It reported sales of $1.34 billion in line with expectations. Outdoor was the best-performing division during the quarter, with year-over-year sales growth of 7%, driven by strength in the camping and hunting businesses. Adjusted diluted EPS stood at 98 cents.
Academy Sports and Outdoors, Inc. (NASDAQ:ASO) is focused on growth through new stores. It opened 16 new stores in 2024 and plans to open 20 to 25 new locations in 2025, raising its unit count by 7.5%. Given its positive growth trends, the company plans to open 160 to 180 stores over the next five years.
The company delivered its 20th consecutive quarter of positive adjusted free cash flow. It reported approximately $252 million of adjusted free cash flow year-to-date, up 68% from last year. Academy Sports and Outdoors, Inc. (NASDAQ:ASO) ended Q3 with $296 million in cash, improving 7.7% year-over-year. The inventory balance stood at $1.52 billion, an increase of 2.2% from 2023.
Academy Sports and Outdoors, Inc. (NASDAQ:ASO) is also committed to shareholder returns. In December, the Board authorized a $700 million share repurchase program and declared a quarterly dividend of 11 cents per share, raising investor confidence in the business. Wall Street analysts are also bullish on the stock, with a consensus Buy rating and an average share price upside potential of 18.51%.
2. Olin Corporation (NYSE:OLN)
Number of Hedge Fund Holders: 33
Olin Corporation (NYSE:OLN) is an American manufacturer and distributor of ammunition, sodium chloride, and chlorine. It traces its origin to two companies – Equitable Powder Company and Mathieson Alkali Works – both founded in 1892. The company has three business segments, Chlor Alkali Products, Vinyls, and Winchester, with the latter focused on arms and ammunition.
On February 5, Olin Corporation (NYSE:OLN)’s Winchester division along with the Army’s Joint Program Executive Office for Armaments and Ammunition (JPEO A&A) and Joint Munitions Command (JMC) celebrated the groundbreaking of the new 6.8mm ammunition facility at the Lake City Army Ammunition Plant. This initiative is a major step in the U.S. Army’s modernization efforts and will play a vital role in national defense.
In January, Winchester entered into a $75 million agreement to acquire AMMO, Inc.’s small-caliber ammunition manufacturing assets. The acquisition would include a 185,000-square-foot production facility in Manitowoc, constructed by AMMO in 2022. The move is expected to yield realized synergies of $40 million and will also enhance Olin Corporation (NYSE:OLN)’s ability to participate across high-margin specialty calibers.
During Olin Corporation’s (NYSE:OLN) recent Q4 2024 earnings call on January 30, the company announced a 10% increase in Winchester’s quarterly sales to $435.4 million, driven by a growth in military sales and military project revenue. Earnings for the segment stood at $42 million. This was down from $65.4 million during the same period last year. The dip was attributed to higher propellant costs, declining commercial ammunition shipments, and lower pricing.
Olin Corporation (NYSE:OLN) is one of the best gun stocks to buy in 2025. Wall Street analysts have a consensus Buy rating for the company, with an average share price upside potential of 53%.
1. Axon Enterprise, Inc. (NASDAQ:AXON)
Number of Hedge Fund Holders: 46
Axon Enterprise, Inc. (NASDAQ:AXON) is an American manufacturer of weapons and technology for law enforcement agencies, military, and civilian use. The company has a diverse product catalog that includes TASER energy weapons, cameras, sensors, and others.
The stock has had a tremendous five-year run, during which its share price has grown by a whopping 656%, amid robust demand in its TASER segment and several tactical partnerships and acquisitions during this period.
The company’s financial performance remains strong as well. During its recent Q3 2024 earnings call on November 7, Axon Enterprise, Inc. (NASDAQ:AXON) reported that it had delivered above 30% annual revenue growth for each of the three quarters in 2024, driven by surging demand for all its products and services. This marked 11 successive quarters of over 25% growth, which has further bolstered investor confidence in the stock. Conestoga Capital Advisors stated the following regarding Axon in its Q4 2024 investor letter:
Axon Enterprise, Inc. (NASDAQ:AXON) continued to see robust demand for its products and services, from TASERs to body cameras to the software that powers many applications within public safety operations. Shares jumped on third-quarter results, which saw revenue grow 32%, EBITDA 58%, and backlog 33% to $7.7 billion. In addition, AXON continued to expand adjusted EBITDA margins, which were above 25% in the third quarter. AXON was a leader in three of the four quarters in 2024.
According to Insider Monkey’s database for Q3 2024, 46 hedge funds held a stake in the company – a significant improvement from 36 at the end of the second quarter. Navellier & Associates was the largest investor in the company, with holdings valued at over $8.6 million as of September 30, 2024. Based on investor sentiment, Axon Enterprise, Inc. (NASDAQ:AXON) is the best gun stock to buy in 2025.
Overall, AXON ranks first among the 10 Best Gun Stocks to Buy in 2025. While we acknowledge the potential of gun companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than AXON but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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