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Smith & Wesson Stock Shows Market Leadership; Strength Rating Jumps To 83 Amid Brisk Sales, Profit Growth

When a mass shooting in the U.S. occurs, gun sales generally rise as people buy firearms to protect themselves. The latest shooting was at a Michigan high school on Tuesday in which three people were killed. Sales of guns made by Smith & Wesson Brands (SWBI) Sturm Ruger and others could rise as a result. On Wednesday Smith & Wesson stock’s Relative Strength (RS) Rating climbed into a higher percentile, rising to 83, up from 76.




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Smith & Wesson stock had a long run higher after the Covid crash, rising more than 800% from 4.24 a share in late March 2020 to a 39.61 high on July 2 this year. It consolidated in late summer and starting rising again in September.

Smith & Wesson Stock Eagerly Sought

The 83 RS Rating means Smith & Wesson stock is outperforming 83% of all stocks. It’s a significant rating jump because market research shows that the best stocks tend to have an 80 or better RS Rating in the early stages of their moves. Smith & Wesson Brands stock finished Wednesday down 1% to 22.50, although it’s still up from an Oct. 1 low of 20.23.

Among other key ratings, Smith & Wesson stock has an 84 Composite Rating. The Composite Rating is an amalgam of five other IBD ratings. The best growth stocks have a 90 or better Composite before they break out. The company’s 80 EPS Rating puts it in the top 20% of all companies for profit growth. And its B+ Accumulation/Distribution Rating on an A+ to E scale indicates institutional investors are buying its stock.

Smith & Wesson Brands showed 89% earnings growth in its most recent report, to $1.57 per share. Profit the prior two quarters grew 700% then 242%. Sales increased 19% last quarter to $274.6 million. The next quarterly results are expected on or around Dec. 3.


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Smith & Wesson stock is not currently near a potential buying area. See if the stock goes on to form a sound pattern that could launch a new move, such as a three-weeks-tight pattern, or a rebound off its 50-day or 10-week line in high volume.

Peers In Security/Safety Group

Smith & Wesson stock holds the No. 3 rank among its peers in the Security/Safety industry group. Axon Enterprise (AXON) and Napco Security Tech (NSSC) are also among the group’s highest-rated stocks.

When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.

This proprietary rating measures market leadership by using a 1 (worst) to 99 (best) score that shows how a stock’s price performance over the trailing 52 weeks matches up against the rest of the market.

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