5 Best Gun Stocks to Buy Now

4. Smith & Wesson Brands, Inc. (NASDAQ: SWBI)

Number of Hedge Fund Holders: 21

Smith & Wesson Brands, Inc. (NASDAQ: SWBI) is a firearm company based in Massachusetts that ranks 4th on the list of 10 best gun stocks to buy now. The company manufactures and sells small arms, such as pistols and revolvers, and rifles, and other firearm products. 

In August 2020, Smith & Wesson Brands, Inc. (NASDAQ: SWBI) completed the corporate spin-off of its outdoor products business, American Outdoor Brands, Inc. (NASDAQ: AOUT). American Outdoor Brands, Inc. (NASDAQ: AOUT) still has a weapons division that sells guns for shooting and self-defense. Smith & Wesson Brands, Inc. (NASDAQ: SWBI) stock has gained 31%, year to date.

On June 21, Lake Street analyst Mark Smith maintained a Buy rating on Smith & Wesson Brands, Inc. (NASDAQ: SWBI) and raised its price target to $43 per share from $34 previously, citing the company’s consistent demand for firearms. 

The company has a market cap of $1.12 billion. Shares of Smith & Wesson Brands, Inc. (NASDAQ: SWBI) climbed 19.4% on June 21 after the company announced its fourth-quarter fiscal 2021 earnings, wherein the company reported an EPS of $1.71, beating estimates by $1.71. The company’s fourth-quarter revenue came in at $322.9 million, an increase of 67.3% year over year, and beat revenue estimates by $63.14 million. The company’s shipments increased by 70% in the fiscal year 2021. Smith & Wesson Brands, Inc.’s (NASDAQ: SWBI) full-year revenue came in at $1.1 billion, up 100% year over year.

At the end of the second quarter of 2021, 21 hedge funds in the database of Insider Monkey held stakes worth $242 million in Smith & Wesson Brands, Inc. (NASDAQ: SWBI), up from 18 in the previous quarter worth $99.6 million.