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.


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.

Looking For The Best Stocks To Buy And Watch? Start Here

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.


Get Full Access To IBD Stock Lists And Ratings

Why Should You Use IBD’s Relative Strength Rating?

How Relative Strength Line Can Help You Judge A Stock

Find Top Stocks Near A Buy Point With IBD Leaderboard

MarketSmith: Research, Charts, Data And Coaching All In One Place

Most Related Links :
Business News Governmental News Finance News

Need Your Help Today. Your $1 can change life.

[charitable_donation_form campaign_id=57167]

Source link

Back to top button