Smith & Wesson Holding Corporation (SWHC): Today's Featured Aerospace/Defense Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Smith & Wesson Holding Corporation ( SWHC) pushed the Aerospace/Defense industry lower today making it today's featured Aerospace/Defense laggard. The industry as a whole closed the day up 0.4%. By the end of trading, Smith & Wesson Holding Corporation fell 20 cents (-2.2%) to $8.95 on light volume. Throughout the day, 2.5 million shares of Smith & Wesson Holding Corporation exchanged hands as compared to its average daily volume of 4.6 million shares. The stock ranged in price between $8.90-$9.18 after having opened the day at $9.15 as compared to the previous trading day's close of $9.15. Other companies within the Aerospace/Defense industry that declined today were: TAT Technologies ( TATT), down 5.6%, Aerosonic Corporation ( AIM), down 3.2%, Astrotech Corporation ( ASTC), down 2.5%, and Sifco Industries ( SIF), down 2.4%.
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Smith & Wesson Holding Corporation provides products and services for safety, security, protection, and sports in the United States and internationally. Smith & Wesson Holding Corporation has a market cap of $608.2 million and is part of the industrial goods sector. The company has a P/E ratio of 10.4, below the S&P 500 P/E ratio of 17.7. Shares are up 8.8% year to date as of the close of trading on Monday. Currently there is one analyst that rates Smith & Wesson Holding Corporation a buy, no analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates Smith & Wesson Holding Corporation as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, Frontline ( FRO), up 7.3%, Erickson Air-Crane ( EAC), up 7%, Edac Technologies Corporation ( EDAC), up 5.8%, and Huntington Ingalls Industries ( HII), up 2.9%, were all gainers within the aerospace/defense industry with Rockwell Collins ( COL) being today's featured aerospace/defense industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the aerospace/defense industry could consider iShares DJ US Aerospace & Def Idx ( ITA) while those bearish on the aerospace/defense industry could consider ProShares Short Dow 30 ( DOG).

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