Americans are stereotypically perceived to be trigger happy. So are American investors who have pushed up the prices of gun manufacturers. Investors are loving gun-related stocks right now. Demand for semi-automatics, assault rifles, and high capacity magazines has risen thanks to Obama's proposals for more stringent gun control. These profits may not be sustainable or socially responsible but in the meantime…
Sales of firearms at Sturm, Ruger & Company (RGR) were up 60% in the first nine months. The company's backlog continues to shrink as demand continues to surge. Smith & Wesson (SWHC) provides firearms to law enforcement officials but it has seen similar rallys. RGR was up 7.17% this week while SWHC was up 3.62%.
Alliant (ATK) manufacturers military grade weaponry and has seen its shares appreciate a good 34.93% in the past 6 months. And what's the point of these weapons without ammunition? Olin (OLN) is the main player in ammunition. It has experienced steady revenue thanks to ongoing wars but continues to be dedicated to ammo.
Investors looking to diversify will find haven in distributors of the above goodies. Dick's Sporting Goods (DKS), Cabela's (CAB), and Wal-mart (WMT) are the big retailers stocking (and restocking) highly sought-after rifles and accessories. Maybe it's the Annie Oakley in us.
The following infographic by Kapitall sheds light on trends in gun sales: