Markets

Smith & Wesson (SWBI) Outpaces Stock Market Gains: What You Should Know

Smith & Wesson (SWBI) closed the most recent trading day at $26, moving +0.93% from the previous trading session. This change outpaced the S&P 500's 0.64% gain on the day. Meanwhile, the Dow gained 1.39%, and the Nasdaq, a tech-heavy index, added 0.52%.

SWBI will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.49, up 1533.33% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $201.80 million, up 63.18% from the prior-year quarter.

SWBI's full-year Zacks Consensus Estimates are calling for earnings of $1.85 per share and revenue of $862.10 million. These results would represent year-over-year changes of +125.61% and +27.08%, respectively.

Investors might also notice recent changes to analyst estimates for SWBI. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. Within the past 30 days, our consensus EPS projection has moved 4.23% higher. SWBI is currently a Zacks Rank #1 (Strong Buy).

Looking at its valuation, SWBI is holding a Forward P/E ratio of 13.92. Its industry sports an average Forward P/E of 29.23, so we one might conclude that SWBI is trading at a discount comparatively.

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 6, which puts it in the top 3% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


Click to get this free report

American Outdoor Brands Corporation (SWBI): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More