Americans are stereotypically perceived to be trigger happy. So are American investors who are loving gun-related stocks right now. Demand for semi-automatics, assault rifles, and high capacity magazines has risen thanks to Obama's proposals for more stringent gun control. These profits may not be sustainable but in the meantime… [Related: Dark Side of 3D Printing: Gun Prints Are Becoming More Advanced]
Sales of firearms at Sturm, Ruger & Company (RGR) were up 60% in the first nine months. The company's backlog continues to shrink as demand continues to surge. Smith & Wesson (SWHC) provides firearms to law enforcement officials but it has seen similar rallys. RGR was up 7.17% this week while SWHC was up 3.62%.
Alliant (ATK) manufacturers military grade weaponry and has seen its shares appreciate a good 34.93% in the past 6 months. And what's the point of these weapons without ammunition? Olin (OLN) is the main player in ammunition. It has experienced steady revenue thanks to ongoing wars but continues to be dedicated to ammo.
Infographic chart: Press the play button to see how 1-year return has changed over the past two years. As you can see, the sector has fared well. This and other free tools provided by Kapitall.Investors looking to diversify will find haven in distributors of the above goodies. Dick's Sporting Goods (DKS), Cabela's (CAB), and Wal-mart (WMT) are the big retailers stocking (and restocking) highly sought-after rifles and accessories. Maybe it's the Annie Oakley in us. The following infographic by Kapitall sheds light on trends in gun sales:
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
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
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV