OLN, SWBI & RGR among top 5 US gun stocks to watch in Q2

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Highlights

  • Olin Corporation (NYSE: OLN) has a dividend yield of 1.32% and a P/E ratio of 93.
  • Smith & Wesson (NASDAQ: SWBI) has a P/E ratio of 2.7, with a dividend yield of 2.3%.
  • Sturm, Ruger & Co (NYSE: RGR) has a dividend yield of 5.22% and a P/E ratio of 7.82.

Gun deaths in the US surged 35% in 2020, the highest level since 1994, and most of whom were young black men, a report of the US Centers for Disease Control and Prevention said Tuesday.

The data shows that African Americans are at least four times more likely to be killed than the overall population and 12 times more than a white person. An FBI report showed that firearm homicide rose 30% in 2020. The homicide rate was measured per 100,000 people. 

Gun stocks were up on Wednesday. Here we discuss five such stocks:

Olin Corporation (NYSE: OLN)

Closing price on May 10, 2022: US$59.54

Clayton, Missouri-based Olin Corporation manufactures and sells different chemicals, chemical-based products, and ammunition. Its three reportable segments are Chlor alkali products and Vinyls, Epoxy, and Winchester.

For the first quarter ended March 31, 2022, it reported sales of US$2.46 billion compared to US$1.9 billion in the same quarter in 2021.

Its net income came in at US$393 million or US$2.48 per share diluted compared to US$243.6 million or US$1.51 per share diluted in the first quarter of 2021.

The stock has a market capitalization of US$9.38 billion. The stock has a dividend yield of 1.32%, with an annualized dividend of US$0.80. Its P/E ratio is 6.93, and the forward P/E for one year is 5.98. The stock traded at US$61.62, up 3.49%, at 10:24 am ET.

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

Closing price on May 10, 2022: US$13.72

Smith & Wesson Brands Inc. manufactures different types of firearms. The Springfield, Massachusetts-based company operates under one segment, firearms, and manufactures handguns, long guns, shooting gear, sporting rifles, and suppressor products. Its products are used for law enforcement, defense, hunting, and sporting purposes. 

The company reported net sales of US$177.7 million for the quarter ended March 31, 2022, a 31% decrease YoY, compared to US$257.6 million in the previous year’s quarter.

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It booked a net income of US$30.5 million or US$0.65 per share diluted compared to US$62.39 million or US$1.12 per share diluted in the March quarter of 2021. 

The stock has a market capitalization of US$626.7 million. Its P/E ratio is 2.7, and the forward P/E for one year is 3.41. The stock has a dividend yield of 2.3% with an annualized dividend of US$0.32. SWBI stock was up by 1.24% to US$13.89 at 10:25 am ET.

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Sportsman's Warehouse Holdings, Inc. (NASDAQ: SPWH)

Closing price on May 10, 2022: US$9.1

West Jordan, Utah-based Sportsman's Warehouse Holdings Inc. is an outdoor sporting goods retailer. It provides customers with shooting, fishing, and hunting gear. 

For the fiscal year ended January 29, 2022, it reported net sales of US$1.5 billion compared to US$1.45 billion in the previous fiscal.

The net income of the company came in at US$108 million or US$2.44 per share diluted compared to US$91.3 million or US$2.06 per share diluted in fiscal 2021. 

The stock has a market capitalization of US$408.5 million. Its P/E ratio is 3.83, and the forward P/E for one year is 6.32. 

SPWH stock rose 3.85% to US$9.45 on Wednesday at 10:25 am ET.

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National Presto Industries, Inc. (NYSE: NPK)

Closing price on May 10, 2022: US$71.32

National Presto Industries Inc.'s products include household appliances, ammunition, and diapers. Its three operating segments are Defense, Housewares/Small Appliance, and Safety. The company is based in Wisconsin. The defense segment contributes most of its revenue.

For the year ended December 31, 2021, its net sales were US$355.8 million compared to US$352.6 billion in FY 2020. The net income of the company was US$25.7 million or US$3.63 per share diluted compared to US$46.96 million or US$6.67 per share diluted in fiscal 2020.

The stock has a market capitalization of US$511 million. Its P/E ratio is 26.17. The stock has a dividend yield of 1.37% with an annualized dividend of US$1.0.

The stock traded at US$72.23 with a 1.28% surge on Wednesday at 10:25 am ET.

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Sturm, Ruger & Company, Inc. (NYSE: RGR)

Closing price on May 10, 2022: US$65.0

Sturm Ruger & Co Inc. manufactures firearms for domestic customers. It sells pistols, revolvers, and rifles through independent wholesale distributors. It is based in Southport, Connecticut. 

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For the three months ended April 2, 2022, the company reported net sales of US$166.6 million compared to US$184.4 million in the corresponding quarter a year ago.

Its net income was US$30.23 million or US$1.70 per share diluted compared to US$38.19 million or US$2.16 per share diluted in the same quarter of 2021.

The stock has a market capitalization of US$1.15 billion. Its P/E ratio is 7.82, and the forward P/E for one year is 11.86. The stock has a dividend yield of 5.22% with an annualized dividend of US$2.72. The RGR stock surged 0.54% to US$65.35 at 10:28 am ET on Wednesday.

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Bottom line:

These stocks had been in the negative territory for the past one year. Hence, investors should carefully evaluate the companies before investing in stocks.


 


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