In this piece, we will take a look at the five best gun stocks to buy in 2022. For more stocks, head on over to 9 Best Gun Stocks to Buy In 2022.
5. Clarus Corporation (NASDAQ:CLAR)
Number of Hedge Fund Holders: 18
Clarus Corporation (NASDAQ:CLAR) manufactures bullets and ammunition for military and sports target shooting. The company is headquartered in Salt Lake City, Utah, the United States.
Clarus Corporation (NASDAQ:CLAR) has a fortress balance sheet with its current assets of $250 million more than three times its current liabilities of $69 million. The company’s second quarter of 2022 earnings saw its revenue grow by 57% and net income grow by a whopping 105% sequentially. During the same time, its operating income also grew by 51% to stand at a record $17.6 million.
Clarus Corporation (NASDAQ:CLAR) has also been on a strong acquisitions spree over the past couple of years which has seen its revenue more than double from 2016 to 2021. It expects 25% revenue and 27% operating income growth this year.
Clarus Corporation (NASDAQ:CLAR) pays a 2 cent dividend for a 0.78% yield. Insider Monkey’s Q2 2022 survey of 895 hedge funds saw 18 investors in the firm.
4. Vista Outdoor Inc. (NYSE:VSTO)
Number of Hedge Fund Holders: 25
Vista Outdoor Inc. (NYSE:VSTO) is an American sporting goods company that manufactures and sells hunting and shooting accessories alongside ammunition products for rifles and pistols. The firm is headquartered in Anoka, Minnesota.
Vista Outdoor Inc. (NYSE:VSTO)’s fiscal 2022 results saw the company post $3 billion in revenue and $646 million in operating profit, with the company guiding for more growth through a forecasted revenue of $3.2 billion for its current fiscal year. The firm followed this up with strong earnings for the first fiscal quarter of 2023 as well, with its $803 million in revenue growing by 21% and earnings per share rising to $2.31.
B. Riley set a $51 share price target for Vista Outdoor Inc. (NYSE:VSTO) in September 2022, as it stated that the firm’s ammunition demand will stay strong. Out of the 895 hedge funds polled by Insider Monkey for their second quarter of 2022 holdings, 25 had invested in Vista Outdoor Inc. (NYSE:VSTO).
Out of these, Jeffrey Gates’ Gates Capital Management is Vista Outdoor Inc. (NYSE:VSTO)’s largest investor. It owns 5.5 million shares that are worth $155 million.
3. Axon Enterprise, Inc. (NASDAQ:AXON)
Number of Hedge Fund Holders: 26
Axon Enterprise, Inc. (NASDAQ:AXON) is an American company that sells taser guns. These include several types of taser guns with different features and users such as law enforcement and general citizens. The company is headquartered in Scottsdale, Arizona.
Axon Enterprise, Inc. (NASDAQ:AXON) became one of the few gun companies to post growth in its second fiscal quarter. Its earnings revealed that the firm’s Q2 revenues had grown by 31%, building on the 32% growth in the previous quarter. At the same time, it posted a record high operating margin of 7%.
Axon Enterprise, Inc. (NASDAQ:AXON)’s shares have also beaten major stock indexes, as year to date, they are down by 17%, nearly half of the 30% drops in major stock indexes. As this year’s second quarter ended, 26 out of the 895 hedge funds polled by Insider Monkey had invested in Axon Enterprise, Inc. (NASDAQ:AXON).
Axon Enterprise, Inc. (NASDAQ:AXON)’s largest investor is Neal C. Bradsher’s Broadwood Capital which owns 760,062 shares that are worth $70 million.
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!
1. Olin Corporation (NYSE:OLN)
Number of Hedge Fund Holders: 43
Olin Corporation (NYSE:OLN) owns one of the most iconic gun brands, the Winchester Repeating Arms Company, which was set up in 1866 during the time of the American civil war and was acquired by Olin Corporation (NYSE:OLN) in 1931. The company is headquartered in Clayton Missouri.
Olin Corporation (NYSE:OLN)’s second quarter operating income stood close to $710 million as it marked a strong annual growth. In its latest earnings call, management outlined that even during a recessionary scenario, the firm is capable of generating $7 for levered free cash flow per share, and at the same time announced a $2 billion share buyback program.
Olin Corporation (NYSE:OLN) also pays a 20 cent dividend for a 1.69% yield. 43 out of the 895 hedge funds polled by Insider Monkey for their holdings during this year’s second quarter had held a stake in the firearms firm.
Olin Corporation (NYSE:OLN)’s largest investor is Scott Ferguson’s Sachem Head Capital which owns 9.4 million shares that are worth $437 million.
Disclosure: None. You can also take a look at 10 Biggest Industries In the US and 10 Best EV Battery Stocks to Buy in Late 2022.
