The United States Presidential Election has historically impacted markets in some way. However, there are some stocks that are more impacted than others by changing political winds. As it stands today, Donald Trump enjoys a very strong lead in the ongoing Republican primary fight. The first official primary kicks off in Iowa on January 15, 2024. Joe Biden won a fiercely contested 2020 Presidential Election, which did have an impact on firearm stocks.
Sturm & Ruger (NYSE:RGR) is a Connecticut-based company that designs, manufactures, and sells firearms under the Ruger name and trademark in the United States. Shares of Sturm & Ruger did suffer a dip following the election on November 3, 2021. However, in recent history a Democrat in office has spurred firearm sales. This was especially the case during the Barack Obama administrations.
Smith & Wesson Brands (NASDAQ:SWBI) was recently spun off from American Outdoor Brands in the wake of a changing political climate. However, the company said that this would allow both brands to better direct their strategic priorities and capital allocation. In any case, Smith & Wesson brands have continued to perform well since the official spin off.
It remains to be seen how the US election will play out in 2024. However, the increased divisions seem to indicate that it will likely be a tight race once again. Firearms should once again be a hot-button issue.