2024-07-15 07:12:15 ET
Summary
- Gun sales have been increasing in response to political turmoil in the US, likely becoming a new norm.
- Consequently, Smith & Wesson's stock value is expected to rise during peaks in the "gun cycle," potentially before quarterly results confirm it.
- A recent attempt on former-President Trump's life may serve as just such a catalyst.
- With an established brand and zero debt, SWBI does not pose much long-term danger either, but investors should have an exit plan.
Smith & Wesson (SWBI) is a well-known gun manufacturer in the United States. I first looked at it in February 2022. Reviewing the aftermath of the 2020 elections and its impact on gun sales, I concluded in my personal notes:
Gun sales have been up in recent years in response to political turmoil in the United States. Given the increasingly divisive nature of politics in the Republic, this trend is unlikely to change, and the purchase of firearms by concerned citizens at this level is likely a new norm.
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For further details see:
Smith & Wesson: The Cyclical Swing Has Been Triggered