9 Best Gun Stocks to Buy Now

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 United States, with stores in 29 states across the country. The company sells footwear, apparel, and gear for enthusiasts of shooting, hunting, fishing, camping, and other outdoor activities.

During the first half of the year, the company reported net sales of $532.97 million, down 7.6% compared to the same period last year. During both quarters, Sportsman’s Warehouse Holdings, Inc. (NASDAQ:SPWH) also missed its earnings expectations. These results were driven by a drop in store traffic, a decline in demand for products in most categories, and increased expenditures from inventory shrink. As a result, the stock has lost over 31% of its share value during the last 12 months. Company executives are also cautious about results for the back half of the year and have revised their guidance for the full year.

Having said that, there were some positives reported in Q2 2024 for Sportsman’s Warehouse Holdings, Inc. (NASDAQ:SPWH) as it ended the quarter with a clean inventory and has vowed to shift focus on strategic investments in core parts of the business that generate a bulk of its sales. Moreover, e-commerce sales were up 3% from last year and comprised 19% of total revenue. Sales in the fishing department continued to grow, and trends improved in the hunting category as well.

Despite the ongoing challenges, Sportsman’s Warehouse Holdings, Inc. (NASDAQ:SPWH) is one of the best gun stocks to buy now in the industry. According to Insider Monkey’s database, 18 hedge funds were bullish about the stock at the end of the second quarter this year, up from 17 at the end of Q1. Most analysts agree that the stock is expected to recover once current challenges subside. They hold a consensus Buy rating on the stock, with a price target of $3 per share, suggesting a potential upside of 2.39%.