In this article, we explore the 8 Best Gun Stocks to Buy in 2026.
Defense and firearms manufacturers produce weapons systems, ammunition, and related equipment for military, law enforcement, and civilian markets. These companies can be large defense contractors developing integrated weapons platforms or small specialized manufacturers focused on small arms, rifles, and ammunition production.
The companies operate in a market that, according to IMARC Group, is in the midst of a sustained expansion. IMARC Group valued the global firearms market at $44.0 billion in 2025 and expects it to reach $72.1 billion by 2034. This translates to a compound annual growth rate of 5.64% over the forecast period, and the growth will cut across civilian, law enforcement, military, and private security channels, the analysis noted. In fact, the Stockholm International Peace Research Institute, or SIPRI, noted in a March 9 report that, globally, arms demand is surging at its fastest pace in more than a decade. The report detailed that the volume of major arms transferred between states rose 9.2% between 2016 and 2020 and between 2021 and 2025.
According to SIPRI, European nations were the world’s largest recipients of arms, especially in the 2021-2025 period. The region more than tripled its arms imports over that period, said SIPRI. Meanwhile, US arms exports climbed 27%, and the country now supplies 42% of all international arms transfers. No wonder a Bloomberg index of global defense companies surged 18% in 2026 through March 19. In comparison, the S&P 500 declined 3.2%. This happened as the US-led attack on Iran continues to drive governments to rearm, a trend that has added over $28 billion to the fortunes of major defense stakeholders in just three months.
There is an additional layer of support for the gun market, especially in the US, from the civilian market. An analysis of gun sales trends in the US indicates that about 42% of American households owned at least one firearm as of 2022. The analysis added that handgun sales have continued to outpace long guns in early 2026. At the same time, Mordor Intelligence valued the domestic small arms market at $10.75 billion so far in 2026, and forecast it to reach $13.41 billion by 2031. This growth will be driven by defense modernization programs, civilian demand for personal-protection firearms, and advances in modular and smart weapon platforms, noted Mordor.
Against this backdrop, this analysis identifies some gun stocks best positioned to benefit from these converging tailwinds.
Our Methodology
To compile our list of the 8 Best Gun Stocks to Buy in 2026, we scanned Insider Monkey’s database of 1041 hedge funds for Q4 2025 to identify gun and ammunition companies. We prioritized companies that operate as close to pure-play gun businesses as possible, and from this pool, we filtered for stocks with a positive analyst consensus upside potential as of March 21, 2026. The final list is ranked in ascending order based on upside potential.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
Best Gun Stocks to Buy in 2026
8. Smith & Wesson Brands Inc. (NASDAQ:SWBI)
Stock Upside: 5.71%
Number of Hedge Fund Holders: 16
Smith & Wesson Brands Inc. is one of the best gun stocks to buy in 2026. On March 5, Smith & Wesson Brands Inc. shared its third-quarter FY2026 financial results, in which revenue reached $135.7 million. This was a 17.1% increase year over year and surpassed the consensus estimate of $112.8 million. CEO Mark Smith explained during the earnings call that the revenue growth came from a 28% surge in handgun shipments into the sporting goods channel and stronger average selling prices.
Quarterly adjusted earnings per share, or EPS, came in at $0.08 compared to $0.03 a year ago. It was also double the $0.04 that Wall Street was expecting. According to management, the EPS improvement stemmed from an expanded gross margin of 26.2%, up 210 basis points, due to higher production volume, lower promotion costs and lower Federal Excise Tax. This was partially offset by tariff impacts.
Management also detailed that operating cash flow improved significantly to $20.5 million, a $30.3 million year over year swing. This was primarily due to lower inventory, which decreased $7.9 million during the quarter versus a $2.9 million increase in Q3 FY2025, the company noted in the earnings release. The company also reduced its debt to $75 million by quarter-end and subsequently repaid an additional $20 million on its line of credit. So, the outstanding borrowing at the end of the quarter was down to $55 million, Smith, the CEO, said during the earnings call.
For Q4 FY2026, management guided net sales to increase 10%-12% over Q4 FY2025. They cited continued market share growth, strength of brand and product assortment. Management also expects new product offerings to drive growth in an otherwise stable market.
Smith & Wesson Brands Inc. designs, manufactures, and sells firearms for consumer, law enforcement, and military markets. Its product portfolio includes handguns, rifles, and related accessories distributed through sporting goods stores, firearm dealers, and online channels.
7. Northrop Grumman Corporation (NYSE:NOC)
Stock Upside: 6.07%
Number of Hedge Fund Holders: 62
Northrop Grumman Corporation (NYSE:NOC) is one of the best gun stocks to buy in 2026. On March 19, Northrop Grumman Corporation announced that its Talon IQ testbed completed its first-ever partner mission autonomy flight over Mojave, California. Talon IQ is a Model 437 aircraft built by Northrop’s Scaled Composites subsidiary. In this maiden autonomy flight, Talon IQ leveraged Shield AI’s Hivemind software, which served as the aircraft’s autonomous pilot.
According to the press release, Hivemind went through just a single day of hardware-in-the-loop validation before it was cleared for the actual flight. This speed, said Northrop, demonstrates how quickly third-party autonomy software can be onboarded to the Talon IQ platform.
Once airborne, Hivemind took full control of the aircraft. It directed the aircraft through combat air patrol and target engagement maneuvers in real time before the aircraft seamlessly handed control back to Northrop’s own Prism autonomy software. This validates that the two systems can operate interchangeably on the same platform, noted Northrop.
According to Northrop, Talon IQ is built around an open, plug-and-play design. This allows third-party autonomy systems to be swapped in with minimal friction, all while meeting US Government Reference Architecture standards. Put simply, developers don’t have to build a dedicated test aircraft every time they want to trial new software.
On March 17, Northrop Grumman underscored its role as a gun stock by accelerating delivery of the U.S. Army’s Integrated Battle Command System. This weapons integration program links sensors and interceptors into a unified fire control network, enabling faster targeting and engagement of missiles and aircraft. Backed by more than 120 U.S. suppliers and advanced manufacturing facilities, Northrop Grumman is producing thousands of components for rapid deployment, with full‑rate production already underway.
Northrop Grumman Corporation is a US defense contractor that develops and manufactures systems for the aerospace, defense, and national security sectors. Through its subsidiaries, the company produces military gun systems, including automatic cannons and naval guns integrated into aircraft, ships, and armored vehicles.
6. Textron Inc. (NYSE:TXT)
Stock Upside: 11.62%
Number of Hedge Fund Holders: 44
Textron Inc. (NYSE:TXT) is one of the best gun stocks to buy in 2026. On March 17, Bell Textron Inc., a subsidiary of Textron Inc., announced the completion of the first AH‑1Z and UH‑1Y aircraft upgraded under the US Marine Corps’ SPINE program. Formerly known as SIEPU, the program focuses on strengthening aircraft structures and improving power systems to enhance survivability and combat effectiveness across the H‑1 fleet.
The upgraded aircraft left Bell’s Amarillo Assembly Center and are now at Naval Air Station Patuxent River for flight testing. These tests will help finalize the SPINE configuration before wider rollout. Bell emphasized that the upgrades are the result of close collaboration with the US government and industry partners, and represent years of planning and execution.
Bell leaders said the SPINE program ensures the H‑1 fleet can support advanced weapons and future capabilities. The modifications improve safety, effectiveness, and readiness for modern missions. With new leadership roles and a decade‑long plan to support further upgrades, Bell sees SPINE as the next step in the evolution of the H‑1, keeping the aircraft competitive and reliable in demanding environments.
Textron Inc. is a US industrial conglomerate that designs and manufactures aircraft, defense systems, and specialized vehicles. Through its Textron Systems subsidiary, the company produces military gun systems, including advanced automatic cannons and weaponized turrets integrated into armored vehicles and aircraft.
5. Sturm, Ruger & Company, Inc. (NYSE:RGR)
Stock Upside: 15.34%
Number of Hedge Fund Holders: 18
Sturm, Ruger & Company, Inc. 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., 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. 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, 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, 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 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 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. 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. 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. 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. 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.
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