In this article, we will list the 5 Best Gun Stocks to Buy in 2026. Please visit 8 Best Gun Stocks to Buy in 2026 if you would like to see the extended list and the methodology behind it.
5. Sturm, Ruger & Company, Inc. (NYSE:RGR)
Stock Upside: 15.34%
Number of Hedge Fund Holders: 18
Sturm, Ruger & Company, Inc. (NYSE:RGR) is one of the best gun stocks to buy in 2026. On March 10, Beretta Holding S.A., currently the largest shareholder of Sturm, Ruger & Company, Inc. (NYSE:RGR), issued a public clarification pushing back strongly against what it called “blatantly false and misleading” statements made by Ruger’s board. Beretta insisted that its goal has always been a collaborative minority investment, not a takeover.
Beretta is a Luxembourg-based holding company of the Italian firearms dynasty dating to 1526. It quietly built up its Ruger stake through open-market purchases totaling about $60.3 million. The company then filed a Schedule 13D in late 2025 that disclosed the position, showing it owns a 9.95% stake in Ruger, and flagged a broad range of strategic intentions.
However, Ruger’s board responded by adopting a “poison pill” stockholder rights plan in October 2025 to prevent any entity from accumulating further shares. It subsequently demanded that Beretta sign unusually restrictive standstill agreements before any substantive discussions could take place.
In its March 10 statement, Beretta said it had in fact proposed a strategic minority investment at market terms. To the company, Ruger’s characterization of this as a “control grab” was deliberately misleading. Beretta also accused Ruger’s board of breaching a confidentiality agreement by selectively leaking details from private negotiations in a bid to discredit Beretta publicly.
Beretta also criticized Ruger’s recent board refresh, in which three new directors were added. The company described the refresh as cosmetic and noted that long-tenured directors still hold key leadership positions and that a newly adopted retirement policy exempts existing incumbents from the same age and tenure limits imposed on incoming directors.
Sturm, Ruger & Company, Inc. (NYSE:RGR) is a US firearms manufacturer that designs, produces, and sells rifles, pistols, and revolvers. Its products are distributed through independent wholesale distributors, federally licensed retail firearms dealers, and directly to consumers.
4. Outdoor Holding Company (NASDAQ:POWW)
Stock Upside: 31.51%
Number of Hedge Fund Holders: 8
Outdoor Holding Company (NASDAQ:POWW) is one of the best gun stocks to buy in 2026. On March 2, Outdoor Holding Company (NASDAQ:POWW), the publicly traded parent of GunBroker.com, launched a proprietary artificial-intelligence-powered listing tool embedded directly into the GunBroker seller workflow. GunBroker.com is the largest online marketplace for firearms and related products.
According to a press release, the listing tool was trained on 27 years of proprietary transactional data, buyer behavior insights, and listing performance analytics unique to GunBroker. As such, its outputs are calibrated to how buyers on the platform actually search, compare, and purchase.
The tool is also easy to use, said Outdoor Holding Company, or OHC. Sellers enter their firearm specifications as they normally would, upload photos, and can then click “Use AI to Generate Descriptions.” Then, the tool produces up to three structured, marketplace-optimized description options for the seller to choose from, all of which remain fully editable before publishing.
According to the OHC, this launch is one piece of a broader AI roadmap the company is building out. The company said it will continue evaluating and deploying AI-driven enhancements across its platform, with an emphasis on tools that are vertical-specific rather than generic.
This announcement comes on the heels of several other moves by OHC to strengthen GunBroker’s platform infrastructure. Others include a strategic integration with Master FFL in January 2026 to streamline marketplace operations, and a legal settlement with Digital Cash Processing in February 2026.
Outdoor Holding Company (NASDAQ:POWW), formerly Ammo Inc., is an ammunition manufacturer that designs and produces cartridges for handguns, rifles, and military applications. Its product lines include STREAK Visual Ammunition, Signature Ammo, and military-grade munitions supplied to law enforcement and defense customers.
3. Clarus Corporation (NASDAQ:CLAR)
Stock Upside: 36.79%
Number of Hedge Fund Holders: 12
Clarus Corporation (NASDAQ:CLAR) is one of the best gun stocks to buy in 2026. On March 5, Clarus Corporation (NASDAQ:CLAR) reported its Q4 and full-year 2025 results, in which quarterly revenue came in at $65.41 million, down 8% compared to Q4 FY2024, and below analyst estimates of $68.49 million.
During the earnings call, management attributed the revenue shortfall to the 30% decline in the ski business unit, which was due to what they called “the most unfavorable seasonal conditions in 50 years” in key US and European ski destinations. This was compounded by the planned wind-down of low-margin categories like bindings and avalanche beacons. In the Adventure segment, two major OEM customers significantly pulled back orders, and the US bike market remained soft, noted management.
Despite the revenue miss, adjusted EPS came in at $0.09, well ahead of the -$0.03 that Wall Street anticipated. According to management, the swing came from aggressive cost-cutting.
For the full year, net sales totaled $250.4 million, down from $264.3 million in 2024. Adjusted EBITDA margin shrank to just 0.4% from 2.6%, and the company ended the year with zero debt and $36.7 million in cash.
Given the performance, management projected net sales to fall in the $255-$265 million range for the full year 2026. It also anticipates adjusted EBITDA of $9-$11 million, which is a sharp improvement from the near-zero margins of 2025.
Clarus Corporation (NASDAQ:CLAR) designs, manufactures, and distributes outdoor equipment and gear. Through its Sierra Bullets subsidiary, the company produces precision ammunition for rifles and handguns, serving both civilian and law enforcement markets.
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.
1. Sportsman’s Warehouse Holdings, Inc. (NASDAQ:SPWH)
Stock Upside: 145.28%
Number of Hedge Fund Holders: 13
Sportsman’s Warehouse Holdings, Inc. (NASDAQ:SPWH) is one of the best gun stocks to buy in 2026. On March 3, Sportsman’s Warehouse Holdings, Inc. (NASDAQ:SPWH) released preliminary results for its Q4 and full fiscal year 2025, in which it reported $334.9 million in quarterly revenue. The company detailed that same-store sales for the quarter amounted to $333.6 million.
According to management, the quarter started softly, where November and early December underperformed. However, sales picked up sharply mid-quarter and that momentum carried into January and February 2026, management noted. It added that the primary catalyst was strong performance in hunting and shooting sports.
For the full fiscal year, net sales reached approximately $1.21 billion, up 1% from the previous year. This marked the company’s first full year of positive same-store sales growth since 2020, which CEO Paul Stone described as proof that the three-year turnaround strategy launched in 2024 is beginning to pay off. Full-year adjusted EBITDA came in at around $27.5 million, compared to $29.6 million in fiscal year 2024.
The preliminary results showed that the company’s ending inventory fell 8.5% year over year to $312.9 million. Net debt dropped 6.1% to about $90 million and total liquidity stood at $107.8 million. Also, free cash flow for the full year came in at $7.6 million. Management highlighted these as signs that the business is being run more efficiently.
On the downside, the company stated that it has identified five underperforming stores for potential closure. While closures have not been finalized, if all five were shut, they would drag adjusted EBITDA by approximately $1.5 million. The company also expects to record an impairment charge in Q4 tied to leasehold improvements and operating lease assets at these locations.
Sportsman’s Warehouse Holdings, Inc. (NASDAQ:SPWH) is an outdoor sporting goods retailer that sells firearms, ammunition, and related accessories through its chain of retail stores and online platform. Its product offerings include handguns, rifles, shotguns, and shooting gear for hunting and personal protection.
While we acknowledge the potential of SPWH to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SPWH and that has 100x upside potential, check out our report about the cheapest AI stock.
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