NEW YORK ( TheStreet) -- Think the horrific shootings in Aurora, Colo., and subsequent discussion of tougher gun laws might worry shareholders of publicly traded gun manufacturers? Think again.
Shares of both Smith & Wesson Holding Corp. (SWHC - Get Report) and Sturm, Ruger & Co. (RGR - Get Report) have outperformed the broader market during the past two trading days since James Holmes allegedly walked into a crowded movie theater during a midnight premiere of The Dark Knight Rises and opened fire, killing 12 people and wounding 58 others.
As of Monday's market close, shares of Smith & Wesson were down by less than .01% since the close of trading Thursday, before the shooting took place. Smith & Wesson manufactured one of the weapons allegedly used by Holmes in the shooting, according to news reports.
Shares of Sturm, Ruger are up 3.6% over the same time period, while the Standard & Poor's 500 has fallen by 1.9% and the Dow Jones Industrial Average (DJIA) has fallen by 1.7%.Smith & Wesson and Sturm, Ruger are the only two publicly-traded gun manufacturers, though their revenues comprise just 25% of total US commercial gun sales, as most firearms manufacturers are privately held, according to a report published Monday by The Benchmark Company. The report, which previews Sturm, Ruger's scheduled release of second quarter earnings on Aug. 1, does not mention the Aurora shootings, but is bullish on prospects for both Sturm, Ruger and Smith & Wesson. It notes Sturm, Ruger has a "record backlog", but that "success for
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts