Gun stocks are stocks of companies that manufacture and sell firearms and ammunition, including guns and pistols. There are not many publicly-listed gun stocks in the US. Only two manufacturers of firearms are listed on the US stock exchange, while a few other gun stocks are those of retailers that sell firearms.
Gun stocks suffered a decline after the election of Donald Trump as the US President. It was due to restrictions on gun ownership. However, after almost two years of low sales of guns and firearms, gun stocks have again started soaring and performing well.
Ticker | Company Name | Last Price | 1-Year Return | Market Cap |
|---|---|---|---|---|
| RGR | Sturm Ruger | $55.30 | -22.47% | 973.1M |
| VSTO | Vista Outdoor | $26.55 | -27.28% | 1.5B |
| SPWH | Sportsman's Warehouse | $7.94 | -32.08% | 299.3M |
| OLN | Olin Corporation | $51.51 | -2.83% | 6.7B |
| DKS | Dicks Sporting Goods | $138.18 | 29.27% | 11.5B |
| WMT | Walmart | $141.97 | -0.60% | 382.7B |
Factors To Consider Before Investing In Gun Stocks
Investors should consider that the performance of gun stocks relies on many government regulations, laws, political environments, and the economic environment of the country as a whole. For instance, gun stocks rose after two mass shootings in the United States and the introduction of new gun laws. Stricter laws and tough regulations increase the demand and sales of firearms and ammunition, hence the rally in gun stocks.
In addition to the macro-environment, the financial strength of gun companies should also be looked into. Investors must consider sales, revenues, profit margin, earnings per share, and valuation before investing in gun stocks.
Which Gun Stocks Should I Buy?
Of the few listed gunmaker companies, we have shortlisted the best gun stocks for investors to add to their investment portfolios. Gun stocks are quite volatile, yet they hold strong future potential for high returns.
Gun stocks and guns industry are strongly influenced by emotions. Therefore, investors must remain vigilant of the actual valuation before investing in gun stocks. The undervalued gun stocks offer a good opportunity for investors to add gun stocks to their portfolio and generate long-term gains and add value to the portfolio.
