On Jan 22, Zacks Investment Research upgraded
Smith & Wesson Holding Corporation
) to a Zacks Rank #1 (Strong Buy).
ALLIANT TECHSYS (ATK): Free Stock Analysis
CABELAS INC (CAB): Free Stock Analysis Report
STURM RUGER&CO (RGR): Free Stock Analysis
SMITH & WESSON (SWHC): Free Stock Analysis
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Why the Upgrade?
Consistent performance from this firearm manufacturer and strong
second quarter fiscal 2013 results sparked upward earnings
estimate revisions. Moreover, the company delivered positive
earnings surprises in the last 5 quarters with an average beat of
59.3%. The long-term expected earnings growth rate for this stock
The firearm manufacturer reported second quarter fiscal 2013
numbers on Dec 6. Non-GAAP earnings per share of 24 cents per
share surpassed the Zacks Consensus Estimate by 4.35% and the
year-ago figure of 1 cent by a whopping 2300.0%.
The company has seen a steady demand for firearms and a healthy
cash balance which allowed the board of directors to approve of a
buyback of shares.
Gun sales in the U.S. surged following the unfortunate December
shooting in a school at Newtown, CT among fear of stricter gun
regulations and rising concern for personal safety.
Smith & Wesson sat on a firearm backlog of $332.7 million,
increasing $182.8 million year over year from $149.9 million at
the end of the second quarter of fiscal 2012.
The Zacks Consensus Estimate for fiscal 2013 moved higher by
13.04% to $1.04 per share over the last 60 days, which reflects
year-over-year growth of 159.5%. The Zacks Consensus Estimate for
fiscal 2014 increased 94.1% to 93 cents per share over the same
Other Stocks to Consider
The Obama administration has come out with new gun regulations,
which are far less strict than initially expected. Since
the new regulations are set to restrict and not destroy the
prospects of the future gun industry, shares of Smith &
Sturm, Ruger & Co. Inc.
Alliant Techsystems Inc.
) moved upwards on the news.