9 Best Gun Stocks to Buy Now

4. Dick’s Sporting Goods, Inc. (NYSE:DKS)

Number of Hedge Fund Holders: 34

Dick’s Sporting Goods, Inc. (NYSE:DKS) is a Fortune 500 company and the largest sporting goods retailer in the United States, with more than 800 stores across the nation, as of last year. It originally started in 1948 as a fishing gear shop in Binghamton, New York, before venturing into sporting equipment, hunting gear, apparel, and footwear. The company has four subsidiaries – Golf Galaxy, Public Lands, House of Sport, and Going Going Gone.

Dick’s Sporting Goods, Inc. (NYSE:DKS) has been moving away from guns and the hunting department for the last few years. After the 2018 high school shooting in Parkland, Florida, the management decided to stop selling high-capacity magazines and assault rifles like the ones used in the tragic incident. It also announced to set a minimum age of 21 for all gun sales. Over the next two years, Dick’s Sporting Goods, Inc. (NYSE:DKS) removed the hunting department from over 500 stores citing ‘underperformance’.

This year, during the second quarter, the company smashed analysts’ expectations, reporting EPS of $4.37 against anticipation of $3.87. Sales during the quarter totaled just under $3.5 billion, growing 7.8% compared to the second quarter in 2023. Gross profit for the quarter was at $1.28 billion, representing 36.7% of net sales. These strong results in Q2 were driven by growth in all categories, led by footwear and athletic apparel. The company saw more athletes purchase from their stores and digitally, and spend more than they did last year. At the heart of this success was Dick’s Sporting Goods, Inc. (NYSE:DKS)’s Omnichannel athlete experience, which created a seamless buying experience for their customers, including athletes.

After the dominant quarter, the company also raised its full-year Outlook, and now expects its EPS to be in the range of $13.55 to $13.90, up from $13.35 to 13.75 previously. Dick’s Sporting Goods, Inc. (NYSE:DKS) is one of the best gun stocks to buy now, with its share price having increased 47.64% in 2024. There is consensus among analysts on the stock’s Buy rating, with an average share price target of $242 which is 11.7% higher than its current level. According to Insider Monkey, 34 hedge funds were bullish about the stock in Q2 2024.

The bearish sentiment, however, stems from the fact the company went through a calendar shift, which resulted in a benefit of $140 million in sales and $0.45 earnings per share. This is likely to be offset negatively in the second half of the year, mainly during the third quarter.