SWBI - Smith & Wesson - Just 'Good Business' But Now A 'HOLD'

2024-05-26 14:06:24 ET

Summary

• Smith & Wesson has seen a significant increase in its stock price, nearly doubling the S&P 500.
• The company has strong margins, low debt, and impressive profitability, but its revenue can be volatile.
• The valuation for Smith & Wesson is high in the short term, but the long-term upside potential is still promising.

Dear readers/followers,

Over a year ago, I bought a small position in, and initiated coverage on Smith & Wesson (SWBI). The company is a market-leading firearms company with strong margins, low debt, and impressive profitability, despite its volatile revenue trends.

At the time, company results showed top-line revenue improvements, with a focus on the outdoor markets and several new products which saw good traction on the market. While I expected the company to continue to outperform at a good rate, I did not expect the company to nearly double the S&P500 in the meantime. ...

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