In this article, we will be looking at the 5 best gun stocks to invest in. If you want to see our detailed analysis of the firearms industry, you can go directly to the 10 Best Gun Stocks to Invest In.
5. 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 in the US. The company offers hunting and shooting products like ammunition, firearms, firearms safety and storage products, reloading equipment, and shooting gear products, among others. It ranks 5th on our list of the best gun stocks to invest in.
Sportsman’s Warehouse Holdings, Inc. (NASDAQ: SPWH) was among the stocks rallying and on watch this May in light of the firearms sector’s increased activity because of the FBI’s released report on NICS background checks for firearm sales. In the fiscal first quarter of 2022, Sportsman’s Warehouse Holdings, Inc. (NASDAQ: SPWH) had an EPS of $0.28, beating estimates by $0.37. The company’s revenue was $326.99 million, up 32.47% year over year and beating estimates by $88.80 million. The stock has a forward PE ratio of 9.01 and it has gained 22.68% in the past year. Sportsman’s Warehouse Holdings, Inc. (NASDAQ: SPWH) has a gross profit margin of 33.01% as well.
By the end of the first quarter of 2021, 18 hedge funds out of the 866 tracked by Insider Monkey held stakes in Sportsman’s Warehouse Holdings, Inc. (NASDAQ: SPWH), worth roughly $212 million. This is compared to 25 hedge fund holders in the previous quarter with stakes worth about $174 million.
4. Sturm, Ruger & Company, Inc. (NYSE: RGR)
Number of Hedge Fund Holders: 21
Sturm, Ruger & Company, Inc. (NYSE: RGR) is a designer, manufacturer, and seller of firearms under the Ruger brand and trademark in the US. The company has two segments: Firearms and Castings. It ranks 4th on our list of the best gun stocks to invest in.
This May, Sturm, Ruger & Company, Inc. (NYSE: RGR) raised its quarterly dividend by 21.1%, bringing it up to $0.86 per share. The company’s current dividend yield is 3.08%, making it a suitable choice for income investors as well. The stock was also among the few rallying and on watch this May as demand for firearms remained high. In the first quarter of 2021, Sturm, Ruger & Company, Inc. (NYSE: RGR) had an EPS of $2.16, beating estimates by $0.73. The company’s revenue was $184.38 million, up 49.13% year over year and also beating estimates by $22.85 million. The stock has a forward PE ratio of 12.24 and it has gained 8.3% in the past 6 months and 23.54% year to date. Sturm, Ruger & Company, Inc. (NYSE: RGR) has a gross profit margin of 36.26% as well.
By the end of the first quarter of 2021, 21 hedge funds out of the 866 tracked by Insider Monkey held stakes in Sturm, Ruger & Company, Inc. (NYSE: RGR), worth roughly $135 million. This is compared to 17 hedge fund holders in the previous quarter with stakes worth about $145 million.
3. Vista Outdoor Inc. (NYSE: VSTO)
Number of Hedge Fund Holders: 22
Vista Outdoor Inc. (NYSE: VSTO) is a manufacturer of consumer products in the outdoor sports and recreation markets in the US and internationally. The company’s Shooting Sports segment provides ammunition products like centerfire ammunition, rimfire ammunition, shotshell ammunition, and reloading components, alongside hunting and shooting accessories. It ranks 3rd on our list of the best gun stocks to invest in.
On June 18th, Cowen commented on Vista Outdoor Inc. (NYSE: VSTO), calling it a top stock pick in light of the ammo surge. The firm expects improved resilience in the stock’s EPS and is one of the ten firms on Wall Street with a Buy-equivalent or better rating on Vista Outdoor Inc. (NYSE: VSTO). This May, after the company’s investor day event, Roth Capital Partners increased its price target on Vista Outdoor Inc. (NYSE: VSTO) to $49, with analyst Matt Koranda stating that the company’s long-term goals are attractive and achievable. Monness Crespi & Hardt also increased its price target on Vista Outdoor Inc. (NYSE: VSTO) to $51 after the investor day event in light of the optimist three-year financial targets laid down by the company.
In the fiscal fourth quarter of 2021, Vista Outdoor Inc. (NYSE: VSTO) had an EPS of $1.02, beating estimates by $0.35. The company’s revenue was $596.52 million, up 39.93% year over year and beating estimates by $63.79 million. The stock has a forward PE ratio of 11.45 and it has gained 38.19% in the past 6 months and 70.07% year to date. Vista Outdoor Inc. (NYSE: VSTO) also has a gross profit margin of 28.47%.
By the end of the first quarter of 2021, 22 hedge funds out of the 866 tracked by Insider Monkey held stakes in Vista Outdoor Inc. (NYSE: VSTO), worth roughly $344 million. This is compared to 23 hedge fund holders in the previous quarter with stakes worth about $312 million.
2. Axon Enterprise, Inc. (NASDAQ: AXON)
Number of Hedge Fund Holders: 31
Axon Enterprise, Inc. (NASDAQ: AXON) is a manufacturer of technology and weapons products for the military, law enforcement, and civilians making up its consumer base. The company ranks 2nd on our list of the best gun stocks to invest in.
This June, Axon Enterprise, Inc. (NASDAQ: AXON) and DroneSense entered into a strategic partnership for the provision of an end-to-end drone software solution for public safety agencies. UBS has also named Axon Enterprise, Inc. (NASDAQ: AXON) as a recommended stock pick based on pricing power, margin momentum, and input cost exposure. This May, Raymond James double-upgraded Axon Enterprise, Inc. (NASDAQ: AXON) to a Strong Buy as well, with a $150 price target. Analyst Brian Gesuale has commented that the company has also exceeded expectations, to justify the upgrade. In the first quarter of 2021, Axon Enterprise, Inc. (NASDAQ: AXON) had an EPS of $0.31, beating estimates by $0.10. The company’s revenue was $195.02 million, up 32.52% year over year and beating estimates by $29.06 million. Axon Enterprise, Inc. (NASDAQ: AXON) also has a gross profit margin of 61.89%.
By the end of the first quarter of 2021, 31 hedge funds out of the 866 tracked by Insider Monkey held stakes in Axon Enterprise, Inc. (NASDAQ: AXON), worth roughly $410 million. This is compared to 32 hedge fund holders in the previous quarter with stakes worth about $495 million.
Conestoga Capital Advisors, a boutique, independent investment management firm, mentioned Axon Enterprise, Inc. (NASDAQ: AXON) in its fourth-quarter 2020 investor letter. Here’s what they said:
“AAXN reported third quarter results that were materially ahead of expectations as the company benefitted from continued adoption of body cameras and software tools within police agencies, a surge in Federal bookings, which is a new focus for the company, and continued momentum within the international market. AAXN also introduced 2021 guidance that was ahead of sell-side estimates.”
1. Olin Corporation (NYSE: OLN)
Number of Hedge Fund Holders: 34
Olin Corporation (NYSE: OLN) is a manufacturer and distributor of chemical products in the US, Europe, and internationally. The company’s Winchester segment offers ammunition products for hunters, recreational shooters, and law enforcement, and small caliber military ammunition products for infantry and mounted weapons, among other related products. It ranks 1st on our list of the best gun stocks to invest in.
On July 1st, Olin Corporation (NYSE: OLN) signed an agreement with ASHTA Chemicals to buy and sell ASHTA produced chlorine. Wells Fargo also mentioned Olin Corporation (NYSE: OLN) as one of its top contributors in May, with an Overweight rating and the label of Wells’ best ideas. This June, Olin Corporation (NYSE: OLN) was also upgraded to Buy at UBS with a $62 price target. In the first quarter of 2021, Olin Corporation (NYSE: OLN) had an EPS of $1.54, beating estimates by $0.20. The company’s revenue was $1.92 billion, up 34.64% year over year, and surpassing the previous quarter’s revenue of $1.65 billion. The stock has a forward PE ratio of 7.98 and has gained 61.19% in the past 6 months and 80.31% year to date. Olin Corporation (NYSE: OLN) has a gross profit margin of 13.24% as well.
By the end of the first quarter of 2021, 34 hedge funds out of the 866 tracked by Insider Monkey held stakes in Olin Corporation (NYSE: OLN), worth roughly $1.17 billion. This is compared to 23 hedge fund holders in the previous quarter with stakes worth about $742 million.
You can also take a look at 10 Best Stocks to Buy According to Billionaire Jeffrey Talpins and 15 Companies That Benefitted The Most From The Pandemic.
