5 Best Gun Stocks to Buy In 2022

2. DICK’S Sporting Goods, Inc. (NYSE:DKS)

Number of Hedge Fund Holders: 28

DICK’S Sporting Goods, Inc. (NYSE:DKS) is a sporting goods retailer that was set up in 1948 and is headquartered in Coraopolis, Pennsylvania. The firm sells several different kinds of guns such as hunting rifles and pump action shotguns.

DICK’S Sporting Goods, Inc. (NYSE:DKS) is another sporting and guns company that has managed to weather the storm that has disrupted the stock market this year. Year to date, the firm’s shares are down by a mere 1.3%, for a strong performance in an environment that has seen the broader market lose at least a quarter of its value.

DICK’S Sporting Goods, Inc. (NYSE:DKS)’s average cash flow yield has stood around 14% for the past two years, and from its fiscal year 2021 to 2022, the firm has grown its earnings per share by a massive 159%. It also pays a 49 cent dividend for a 1.72% yield. Insider Monkey studied 895 hedge fund portfolios for their June quarter of 2022 investments to discover that 28 had invested in the company.

Out of these, Stephen Mandel’s Lone Pine Capital is DICK’S Sporting Goods, Inc. (NYSE:DKS)’s largest investor. It owns five million shares that are worth $377 million.

Baron Funds mentioned the company in its Q1 2022 investor letter, as it lamented exiting the stock early. Here is what the fund said:

“Dick’s Sporting Goods, Inc. was the first stock Michael recommended to us shortly after he joined Baron Capital in 2003. Dick’s share price has since increased about nine-fold. Unfortunately, we sold our investment in Dick’s about six years ago and, although it was a successful investment, we did not realize the full benefit of Michael’s recommendation. We sold too soon because I was concerned that competition from internet retailers would have a permanent negative impact on Dick’s stores’ profitability. I was wrong. Dick’s stock price so far has about doubled after we sold…and its prospects have brightened!