9 Best Gun Stocks to Buy Now

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

Number of Hedge Fund Holders: 17

Smith & Wesson Brands, Inc. (NASDAQ:SWBI) is a firearm manufacturing company headquartered in Maryville, Tennessee. The company has been operating since 1852 and is one of the leading manufacturers of long guns, handguns, and other shooting equipment.

The company announced its full-year FY24 results in June, during which it had net sales of $535.8 million, 11.8% higher YoY. GAAP net income for the year was recorded at $39.6 million, up from $36.9 million in 2023. EPS for 2024 was measured at $0.92 compared to $0.94 in the year prior. The strong financial performance was due to an increase in production to meet the demand for both new product offerings and existing core portfolios. A key driver was consumer reception towards the company’s innovation, with new products accounting for around 30% of overall sales.

However, the management at Smith & Wesson Brands, Inc. (NASDAQ:SWBI) anticipated seasonal patterns for firearms to adversely affect sales, as high inflation in the US decreased discretionary consumer spending. Mark Smith, the company’s President and CEO, shared the following remarks in Smith & Wesson Brands, Inc. (NASDAQ:SWBI) Q4 2024 Earnings Call:

We are anticipating a much more competitive marketplace throughout the traditionally slower summer month this year as consumer discretionary spending continues to be impacted by stubborn inflation, as you have likely seen from recent NICS results. This is consistent with normal seasonal patterns for firearms demand, and we do expect offsetting tailwinds during our typical busy season throughout the second half, as the Presidential election campaign activity ramps up in the fall and we benefit from new product introductions and we bring online additional capacity targeted at some of our new products where we are currently constrained. Throughout the slow period this summer, we will be aggressively pursuing market share through promotions and marketing campaigns in addition to building inventory in preparation for the busy fall season and continuing our cadence of new product introductions.

Having said that, the company’s successful new product launches are likely to continue to bolster sales and drive the bullish sentiment around the stock. Smith & Wesson Brands, Inc. (NASDAQ:SWBI) is one of the best gun stocks to buy now with 17 hedge funds in Insider Monkey’s database owning stakes in the company. Street analysts also maintained a Consensus Buy rating on the stock, with an average share price target of $18, representing a 37.4% upside.