Gun Stocks on the Rebound in the Fall

By Baystreet US News Alerts

Gun stocks in the United States have stormed back in the summer and early fall after slumping following a political firestorm early in the year. Let’s look at two stocks that have surged ahead of the U.S. midterms.

American Outdoor Brands (NASDAQ:AOBC) stock has climbed 37% over the past three months as of close on October 16. Shares are now up 15.8% in 2018 so far. The company released its fiscal 2019 first-quarter results back on August 30. Quarterly net sales climbed 7.6% year-over-year to $138.8 million and quarterly GAAP net income rose to $7.6 million or $0.14 per diluted share compared to a loss of $2.2 million or $0.04 per diluted share in the prior year.

New products at American Outdoor Brands represented 28.5% of its firearm revenue in Q1 fiscal 2019. This included strong sales for the M&P Shield 380 EZ pistol, which was launched in February of this year.
Sturm Ruger & Co. (NYSE:RGR) stock has surged 17.5% over the past three months. The stock is now up 18% in 2018 so far. Sturm Ruger released its second-quarter results back on August 1.

For the first six months of 2018, Sturm Ruger has seen net sales fall to $259.6 million compared to $299.2 million in the previous year. Sales of new firearms also powered revenue in the quarter. New products represented 29% of firearm sales in the first half of 2018.

The board of directors also declared a dividend of $0.34 per share representing a 1.6% dividend yield.

This article provided by NewsEdge.