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Smith & Wesson (SWBI) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Smith & Wesson (SWBI) closed at $24.17, marking a +0.37% move from the previous day. This change outpaced the S&P 500's 0.26% gain on the day.

Heading into today, shares of the firearm maker had lost 2.43% over the past month, lagging the Consumer Discretionary sector's loss of 2.13% and the S&P 500's gain of 2.37% in that time.

Wall Street will be looking for positivity from SWBI as it approaches its next earnings report date. On that day, SWBI is projected to report earnings of $1.26 per share, which would represent year-over-year growth of 29.9%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $296.2 million, up 6.56% from the year-ago period.

SWBI's full-year Zacks Consensus Estimates are calling for earnings of $4.40 per share and revenue of $903.4 million. These results would represent year-over-year changes of -3.08% and -18.41%, respectively.

It is also important to note the recent changes to analyst estimates for SWBI. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. SWBI is currently sporting a Zacks Rank of #1 (Strong Buy).

Digging into valuation, SWBI currently has a Forward P/E ratio of 5.48. This represents a discount compared to its industry's average Forward P/E of 12.75.

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 21, which puts it in the top 9% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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