Gun sales in the United States reached all-time record highs in 2021. That trend doesn't seem to be changing any time soon. If you are interested in owning stock from companies that manufacture guns or outdoor supplies it is important to know about those companies. Whether you like getting outdoors or own a firearm, either for self-protection, recreational shooting or hunting there are any number of companies that have you covered for proper supplies.
What We'll Cover
- Smith and Wesson Brands, Inc (SWBI)
- Sturm, Ruger and Company, Inc. (RGR)
- Vista Outdoor Inc. (VSTO)
- American Outdoor Brands (AOBC)
- Olin Corporation (OLN)
- Bottom Line
Here is a list of 5 Weapons and Outdoor Stocks for Gun Owners. Each company is slightly different than the next. One may focus on gun manufacturing while the other focuses on outdoor supplies. But they all have one thing in common, they offer you a good chance to add diversity to your portfolio and a chance to make money.
Smith and Wesson Brands, Inc (SWBI)
Smith and Wesson has a long history in the United States. The company, in a variety of forms, has been around since 1852. Recently, they were known as American Outdoor Brands Corporation, changing to their current name in June of 2020. Either way, they are one of the most well known firearm production companies.
Currently, Smith and Wesson Brands have a variety of goods and services they provide. They are best known for their firearm sales. They sell pistols, revolvers, bolt action rifles, and modern sporting rifles. They also include other firearm related inventory such as handcuffs, suppressors and muzzleloaders.
Smith and Wesson Includes Manufacturing
Here is a quick look at other products Smith and Wesson manufacture They:
- Heat Treat
- Plate and finish
- Mold with customs plastic injection.
The company also sells parts purchased using other parties. They sell all of these products to law enforcement, and security agencies, military agencies and private citizens.
Smith and Wesson has been reporting surprisingly good earnings, thus earning our interest for investing in their stock. They announced almost a $.40 increase of their estimated stock value for a total of $1.12 in the most recent quarter. They have surpassed estimates constantly, earning our interest.
Sturm, Ruger and Company, Inc. (RGR)
Sturm, Ruger and Company, more commonly known as Ruger, has been in business since 1949. Based out of Connecticut with factories in New Hampshire, North Carolina, and Arizona, Ruger is America’s largest firearm manufacturer. Within twenty years of their founding they became publicly traded on the stock market.
While not as diverse as Smith and Wesson, Ruger offers customers a variety of rifles. They are the second largest pistol and revolver manufacturers, offering single and double-action revolvers as well as rim and centerfire autoloading pistols. Ruger includes replacement parts and gun accessories in their inventory.
Like Smith and Wesson, Ruger’s plants also provide castings. They produce commercial titanium castings as well as ductile iron castings. This technology allows Ruger Golf to make steel and titanium castings for golf clubs. They sell their products through wholesale distributors with an emphasis in the commercial sporting markert.
Not only is Ruger’s variety appealing but their stock has been climbing. Their shares rose 36.7% in 2020. That trend is unlikely to slow down as the number of requested background checks on gun buyers has risen over 60%. Overall, this is a good company to get in with in the early part of the year.
Vista Outdoor Inc. (VSTO)
If you are looking for a little more variety, and not just a gun manufacturer, our next entry might interest you. Vista Outdoor advertises as a designer, manufacturer and marketer of outdoor and outdoor recreational goods. With 4,000 employees in the United States, and offices spread worldwide, they trade on the NYSE, and are a well known brand.
Vista offers an incredible variety of outdoor gear. If you are looking to explore the great outdoors they most likely have what you are looking for. Specializing in hydration systems, cooking gear, helmets, footwear, cycling gear and much more. Vista really wants you to test yourself and take their gear while you do.
Diversification within Vista Outdoor
Vista provides a good chance to look at diversification within your stock portfolio. The company is a little different than others on the list. Thus, you cut down on the risk of owning individual stocks. While the possibility of having a bigger payoff with an individual stock is greater the risk of losing money is also a lot higher with a single stock.
While Vista does not manufacture firearms they do work in the realm of shooting sports. Their website states they design, develop and manufacture ammunition, primers and components and similar products. Their customers include outdoor enthusiasts but also law enforcement agencies and the United States military.
Zacks Equity Research Group ranks Vista second in the list of stocks to buy. They give Vista an ‘A’ for value. Overall, the group considers Vista Outdoor Group to be an undervalued stock at the moment, making it a good time to invest in their stocks. They also add Vista's potential for earnings as very attractive. Definitely worth your time.
American Outdoor Brands (AOBC)
American Outdoor Brands was recently in charge of one of their largest brands, Smith and Wesson until Smith was split off in 2020. Located in Missouri, American Outdoor Brands has a large profile, owning 18 brands that specialize in outdoor sports, outdoor recreations, and firearms.
American Outdoor Brands lands in the appropriate spot after Vista Outdoor, because American offers similar options with an emphasis on firearm supplies. They advertise to outdoor adventurers, and the necessary products that go along with those individuals. One can find tents, backpacks, sleeping bags, really anything you need to be outdoors.
Other Products of American Outdoor Brands
The company also supplies products to hunters, shooters and those in the personal security personal or people looking for personal defense products. They provide:
- A Wide variety of supplies
- Firearm cleaning material
- Hunting optics
- Laser grips and aiming devices
Take a look at their website for the large range of products.
In a recent third quarter financial report, American Outdoor Brands announced a net sales increase of over $80 million. That is a huge increase for them, over 90% across both internet sales and traditional in store sales. With their large selection of outdoor gear, and increasing sales, American Outdoor Brands is well worth your time.
Olin Corporation (OLN)
Olin Corporation, once based Connecticut, now in Missouri, has long been a part of American history. Dating back to 1892, it was once part of two other companies focused in powder and alkali. They have since joined, now working through three offering chemical products and ammunition through their Winchester segment.
Olin’s other two segments offer a long list of chemicals and chemical compounds. You can find anything from caustic soda to hydrochloric acid to various pesticides. Some of the products they make are used to purify water, or coat wind blades while some are used in paints, coatings, electronics, and construction materials.
Their Winchester division deals in as much variety of ammunition as the other segments work with chemicals. Their clients include law enforcement agencies, hunters and recreational shooters as well as for the military.
Olin’s Other Focuses
Olin focuses on small caliber munitions, with an emphasis on rimfire ammunition, shotshells, and centerfire for the hunters and recreational shooters. The military uses Olin’s ammunition for infantry and their mounted weapons.
Olin is on the rebound. Though struggling a little last year, they recently announced an increase in earnings around 24%. Stock analysts, Zacks Equity Research, expects their stock rebound to continue for the next few months and ranks them second for a stock to invest in. While a little more risky, experts think this is one to watch.
There are more gun shops in the U.S than there are McDonald's restaurants and there is a reason for that. Demand is really high. The firearm manufacturers and outdoor companies discussed in this article might be good candidates for your investment portfolio. It's a good idea to consult with your financial advisor before making any investment decisions.
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