Smith & Wesson Could Benefit From Strong Demand, Military Proposal

While Smith & Wesson faces some short-term challenges, RealMoney Pro contributor Chris Versace says the company has some encouraging long-term growth prospects. Amid strong demand for firearms, Smith & Wesson recently beat quarterly earnings and revenue expectations but delivered a disappointing guidance, weighing on its shares. Versace says excess inventories at Smith & Wesson and some of its competitors stand to weigh on the industry overall, but there are catalysts for the company, like a potential contract with the U.S. Army. After 30 years of using the Beretta, Versace says the Army is looking to change up its standard-issue sidearm and he believes Smith & Wesson will be one of the top contenders to replace it.