STOCKS TELEGRAPH

Tag: Ammunition Stocks

  • The Three Top Ammunition Stocks for long-Term Investment

    The Three Top Ammunition Stocks for long-Term Investment

    In the past few quarters, the demand for ammunition and guns has increased across the US.

    It was surprising to see a lot of ammunition stocks outperform some of the biggest tech stocks in the market in recent times. The new US administration led by President Joe Biden is a big supporter of gun control. Especially, Vice President Kamala Harris has much faith in the ammunition market. And she would love to work hard on achieving the Second Amendment. This will surely boost the gun market and help the ammunition stocks to skyrocket.

    Why should ammunition stocks be a long-term investment option? As we know that the social and economic crisis has begun all over the world. And the global pandemic has aired such crises. Moreover, the killing of George Floyd was a big turn for the US community to be driven into social crises. So, people are insecure about their privacy and security and for protection, the demand for guns has spiked in the past few months. Moreover, people are spending more time in recreational activities—more. So, let’s see which three ammunition stocks are best for the long-term investment.

    Sturm, Ruger (RGR)

    Sturm, Ruger (RGR) is a US-based firearm manufacturing company, which has steadily grown over the past five years. RGT stock prices are usually aligned with a company’s financial performance in the long-term, which makes it a good long-term investment.

    Since bottoming out at $35.54, RGR shares skyrocketed to as high as $90.74. The stock has pulled back to $68.34, which nears it to the buy point and could you big bucks in the long-term.

    The company is set to announce its fourth-quarter earnings report on Feb. 17, 2021. It’s anticipated that RGR would likely have a strong quarterly outcome, which makes the stock have an upside of 17%.

    In Q3, the company reported net sales of $145.7 million and diluted EPS of $1.39, which was massively above compared to last year’s $95 million and $0.27, respectively. With all the bulls on the RGR side, the company stands a solid chance to grow in both the short and long-term.

    Vista Outdoor (VSTO)

    Vista Outdoor (VSTO) is a well-known firm that manufactures shooting sports products and other sports goods. VSTO stock has jumped from the lows of $6 to $36.23, as we write this. In early 2020, when the market started to become more uncertain, surprisingly, VSTO shares began to push higher—thanks to increasing demand for guns. 

    In last 2020, Cowen analyst Gautam Khanna upgraded the VSTO stock to an “outperform” rating with a price target of $33. He highlighted that the stock is influenced by the increase in outdoor recreation, Biden’s presidency, and the global pandemic. Moreover, the earnings were also impressive.

    Recently, the company reported its third-quarter results. The CFO Sudhanshu Priyadarshi highlighted that the growth during the surge has allowed the company to further gain share, reach new levels of influence and buying power, reduce debt and build cash. 

    The gross profit soared up to $164 million, which reflects a rise of 84% year-over-year. While the adjusted net income was $62 million, resulting in adjusted earnings of $1.03 per share, up from $0.21 per share in the last quarter. Vista Outdoor (VSTO) has a strong balance sheet with $104 million in free cash flow and $294 million year-to-date. With the growing trend and strong financial performance, Vista seems a good bet in the long run.

    American Outdoor Brands (AOUT)

    American Outdoor Brands (AOUT) is a leading provider of outdoor products which includes hunting, shooting, personal security, and defense products. The company is growing with the continuous surge in demand for outdoor hunting and shooting products.

    AOUT stock has been impressive in the market jumping up to $23.31 from $14 in late 2020. The company recently reported second-quarterresultswhich were on a higher side.

    The company’s net sales were $79.1 million, up by a whopping 65.7% year-over-year. While the gross margins improve by 690 basis points to 46.9%. The company has been working hard on its e-commerce channel and it has started to see the outcomes, already. The traditional channel sales soared by 34.3%, whereas, the e-commerce sales surged over 213.4%. This is amazing for AOUT as we head into the era of the digital world.

    American Outdoor Brands (AOUT) has nearly $100 million in available capital to support organic growth and potential future acquisitions. Thus, it expects the fiscal year 2021 to end on a higher note.

  • The 3 Top Ammunition Stocks to Buy with Rising Demand

    The 3 Top Ammunition Stocks to Buy with Rising Demand

    The demand for Ammunition such as guns is on a rise since the murder of African-American George Floyd.

    2020 has been an extraordinary year, full of surprises and uncertainties. The COVID-19 pandemic wasn’t enough as the killing of 46 years African-American George Floyd took place on May 25, 2020. Since then, there has been civil unrest in the US. On top of that, about a month ago, Trump enthusiast marched outside the White House protesting against the unfair elections.

    During this period of agitation, the demand for ammunition increased and the sales for guns were on a rise. As a result, U.S.-listed gun and ammunition stocks outperformed the broader market. The demand has continued since and the ammunition stocks have rallied over time. Here are the three top ammunition stocks to buy this year.

    Smith & Wesson Brands (SWBI)

    Smith & Wesson Brands (SWBI) is one of the most renowned names in the ammunition industry. Since dropping to the lows of $4.42 in March last year, SWBI shares have skyrocketed to a high of $23.57 in January 2021.

    With the recent pullback to $16.77, as of Feb. 2, SWBI stock has an upside amid the high demand for guns in the market. The demand for guns spiked during the second quarter last year, with sales more than doubled year-over-year. In Q4 2020, the company reported consumer demand for firearms increased dramatically. The revenue was up by 37% YoY to $193 million.

    The growing demand keeps the analyst on the bullish side. Wall Street is quite optimistic as SWBI approaches its next earnings report date. According to Street, the company is projected to report earnings of $0.82, a whopping growth of 530.77% YoY. While the Zacks predict the net sales to top $264.70 million, almost a 58.80% increase from the prior-year period.

    AMMO (POWW)

    Ammo (POWW) is an emerging ammunition company that has had an astonishing period recently. The company with a small market cap of 331.783 million is growing well. The rising demand for ammunition in the US has helped the stock price touch its all-time high earlier this year.

    The company has provided its fourth-quarter outlook, which reflects phenomenal revenue growth of 317% YoY. This would be the fourth consecutive quarter with triple-digit growth year-over-year—for Ammo.

    As we head forward, the company anticipates ammunition demand to increase further. Based on the recent US senate election, Ammo believes that the demand for ammunition would continue to spike amid the political uncertainty. So, it’s a promising ammunition stock to buy this year.

    Olin Corp. (OLN)

    Olin Corp. (OLN) is a chemical industry stalwart but it plays a major role in the firearms industry. As an investor, you would not want to roll out OLN stock for a potential investment option this year.

    Olin shares are once again popping up signaling to cross the 52-week high. The company recently posted the Q4 results which were decent considering the pandemic. Olin’s revenue soared over 19% to $1,654.1 million during the quarter; surpassing the consensus estimate of $1,460.6 million.

    The Zacks consensus estimate for this year’s earnings has increased more than 100% over the last 60 days. However, in the recent quarter, Olin posted a loss of $0.21 compared to $0.49 in the same period last year.

    However, the current consensus shows that due to the higher demand for ammunition and better business circumstances than earlier 2020, Olin has more upside. So, keep Olin Corp. (OLN) in your books.