Firearm stocks performed exceedingly well during the Obama administration. Meanwhile, these equities lagged during the four years of Donald Trump’s reign as U.S. president. Gun stocks have historically performed well after a successful Democratic election. Interested parties tend to ramp up fears that harsher regulations will come down on the industry during Democrat-run administrations.
With the coming to power of Joe Biden, investors may want to take another look at top gun stocks.
Sturm Ruger (NYSE:RGR) designs, manufactures, and sells firearms under the Ruger name and trademark in the United States. Shares of Sturm Ruger have dropped 2.3% over the past three months as of close on January 28. However, the stock is up 40% year over year.
In the year-to-date period ending Q3 2020, Sturm Ruger reported net sales of $399 million or $3.31 per share. This is compared to net sales of $305 million or $1.37 per share in the prior year. Shares of Sturm Ruger possess a favourable price-to-earnings ratio of 16. This is one to watch ahead of its final 2020 earnings report.
American Outdoor Brands (NASDAQ:AOUT) provides outdoor products and accessories in the United States and around the world. Its stock has increased 30% over the last three months.
The company released its second-quarter fiscal 2021 results on December 15. Net sales surged 65% year-over-year to $79.1 million. This was powered by improvement in e-commerce and traditional sales channels. Adjusted EBITDA rose to $15.8 million – up from $5.6 million in the prior year.