In the latest trading session, Smith & Wesson (SWBI) closed at $21.78, marking a +1.28% move from the previous day. This change outpaced the S&P 500's 0.84% gain on the day. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq added 2.51%.
Heading into today, shares of the firearm maker had gained 14.85% over the past month, outpacing the Consumer Discretionary sector's gain of 3.48% and the S&P 500's gain of 3.73% in that time.
Wall Street will be looking for positivity from SWBI as it approaches its next earnings report date. The company is expected to report EPS of $0.46, up 1433.33% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $201.80 million, up 63.18% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.78 per share and revenue of $862.10 million, which would represent changes of +117.07% and +27.08%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for SWBI. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.28% higher within the past month. SWBI is currently sporting a Zacks Rank of #1 (Strong Buy).
Digging into valuation, SWBI currently has a Forward P/E ratio of 12.11. This represents a discount compared to its industry's average Forward P/E of 30.6.
The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 4, which puts it in the top 2% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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