Why AMMO, Inc. (POWW) Is Skyrocketing So Far In 2025?

We recently published a list of Why These 15 Industrial Stocks Are Skyrocketing So Far In 2025. In this article, we are going to take a look at where AMMO, Inc. (NASDAQ:POWW) stands against other industrial stocks that are skyrocketing so far in 2025.

The industrial sector has gotten a lot of attention in the past few years from the government due to the U.S. focusing on onshoring manufacturing, and it is likely that it will get even more attention as tariffs start to increase. Moreover, industrial companies are rushing to integrate AI and automation, which could increase margins by a lot in the long run.

As such, it’s a good idea to look into industrial stocks that benefit from these trends. This includes those that have been performing very well so far this year. Companies that adapt to new techs and capitalize from the Trump administration’s policies could deliver the most growth in the coming years.

Methodology

For this article, I screened the top-performing industrial stocks year-to-date. Stocks that I have covered recently will be excluded from this list.

I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds invest in? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).

Why AMMO Inc (POWW) Is Skyrocketing So Far In 2025?

A police officer demonstrating the latest in defensive technologies from the company.

AMMO, Inc. (NASDAQ:POWW)

Number of Hedge Fund Holders In Q3 2024: 6

AMMO, Inc. (NASDAQ:POWW) is the largest firearms e-commerce platform. It makes ammo and components while selling firearms through its e-commerce platform.

The stock has surged significantly so far in 2025 due to its announcement of a $75 million sale of ammunition manufacturing assets to Olin Corporation in January. This includes a 185,000-square-foot Wisconsin facility.

This will provide a $75 million cash infusion, which is a huge amount considering its market cap is at $208 million. It also eliminates $40 million in production costs through synergies and allows the company to fully pivot to its e-commerce platform with higher margins.

AMMO, Inc. (NASDAQ:POWW) also resolved a Nasdaq deficiency issue and avoided delisting risks.

The consensus price target of $1.5 implies 14.29% downside risk.

POWW stock is up 49.57% year-to-date.

Overall, POWW ranks 6th on our list of industrial stocks that are skyrocketing so far in 2025. While we acknowledge the potential of POWW as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than POWW but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

Disclosure: None. This article is originally published at Insider Monkey.