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

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Zacks Equity Research
·2 min read
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Smith & Wesson (SWBI) closed at $16.70 in the latest trading session, marking a +1.95% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.98%. At the same time, the Dow added 0.99%, and the tech-heavy Nasdaq gained 0.5%.

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 $0.82 per share, which would represent year-over-year growth of 530.77%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $264.70 million, up 58.79% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.27 per share and revenue of $961.20 million, which would represent changes of +298.78% and +41.69%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for SWBI. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. SWBI is currently a Zacks Rank #1 (Strong Buy).

Investors should also note SWBI's current valuation metrics, including its Forward P/E ratio of 5.26. Its industry sports an average Forward P/E of 15.55, so we one might conclude that SWBI is trading at a discount comparatively.

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 16, putting it in the top 7% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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