10 Defense Stocks with the Highest EPS Growth in 5 Years

8. Smith & Wesson Brands, Inc. (NASDAQ:SWBI)

EPS Growth, Past 5 Years: 20.77%

Smith & Wesson Brands, Inc. (NASDAQ:SWBI) is a leading maker of long guns, handguns, rifles, and other shooting equipment. The company sells its products to various customers, including competitive shooters, firearm enthusiasts, security agencies, individuals desiring personal protection, sportsmen, and hunters.

On March 6, Smith & Wesson Brands, Inc. (NASDAQ:SWBI) announced results for the third quarter of the fiscal year 2025. Net sales fell 15.7% year-over-year, slightly below the company’s target range. The gross margin was also 4.6% below the comparable quarter last year. Due to softer demand across the industry, the company expects annual revenue for 2025 to be 5% to 10% lower than in the fiscal year 2024.

Despite a challenging environment, Smith & Wesson Brands, Inc. (NASDAQ:SWBI) has been encouraged by the performance of new products, which represented 41% of sales in the recent quarter. The company is focused on innovation and plans to launch several new products during the final quarter of the fiscal year, which are expected to drive strong momentum moving forward.

Wall Street analysts are bullish on the stock, with a consensus Buy rating. According to Insider Monkey’s database for Q4 2024, 15 hedge funds held a stake in the company, unchanged from the third quarter. Smith & Wesson Brands, Inc. (NASDAQ:SWBI) is one of the best defense stocks to buy, with its EPS growing by nearly 21% over the past five years.