5 Best Gun Stocks to Buy in 2026

2. American Outdoor Brands, Inc. (NASDAQ:AOUT)

Stock Upside: 53.94%

Number of Hedge Fund Holders: 7

American Outdoor Brands, Inc. (NASDAQ:AOUT) is one of the best gun stocks to buy in 2026. On March 12, American Outdoor Brands, Inc. (NASDAQ:AOUT) reported its Q3 FY2026 results for the January-ending quarter. Quarterly revenue reached $56.6 million, which surpassed analyst estimates of $55.16 million, but declined 3.3% year over year over. The decline was driven mainly by a 15% drop in the Shooting Sports category, where demand for aiming solutions remained broadly soft across the market. The saving grace was the Outdoor Lifestyle category, which grew 5.4% and made up over 62% of total Q3 revenue.

The quarter’s non-GAAP EPS came in at $0.12, which exceeded consensus estimates by a little over 71%. The figure was down from $0.21 in Q3 FY2025. Management attributed the EPS beat to tighter cost control. On a GAAP basis, EPS swung to -$0.32 against a $0.01 gain a year ago. This was largely due to a one-time, non-cash impairment charge tied to the company’s UST brand, management explained during the earnings call.

Gross margin for the quarter compressed to 41.0% from 44.7% in Q3 FY2025. Management attributed this to the cumulative weight of tariff-related costs absorbed during the period, and they signaled that Q4 margins would dip further as tariff cost variances begin rolling through the income statement.

Looking ahead, management held its full-year FY2026 outlook steady. They projected net sales of $191-$193 million, gross margin of 42%-43%, and adjusted EBITDA of 4%-4.5% of net sales.

American Outdoor Brands, Inc. (NASDAQ:AOUT) manufactures and distributes outdoor products and firearm-related accessories. Its portfolio includes shooting, hunting, and personal protection gear, such as gun cleaning kits, holsters, and firearm storage solutions sold under brands like Caldwell, Wheeler, and Tipton.