Bad market days mean world political or economic forces are at play.
Gun stocks go up as self protection takes lead.
Really bad days mean dolts with "diversified" (read shotgun investors or confused investors) portfolios sell good with bad to "get even".
Everyone knows the logo Smith and Wesson means a gun company. It's a well known logo.
Ruger on the other hand sounds like a Polish bagel company. You can invest under the radar.
That explains the reason why SWHC and RGR are differently valued. Most investors haven't a clue.
Remember "real estate always goes up" in value? How about the "strong dollar"? Now worth 10 cents compared to 1973.
See how that works?
SWHC undervalued. The stock price would be closer to $15 if the guidance for next quarter was better explained as the dip in sales and profits due to the one-time production drop caused by the SAP manufacturing execution system implementation.