Why Investors Should Take A Shot With Smith & Wesson
- Smith and Wesson is cheap by almost every financial measure: shares trade at a forward P/E of 8.53, a Price/Sales of .93, and an EV/EBITDA of 4.24.
- Gun sales are decreasing compared to 2013's record-breaking year, but are still very strong and showing signs of a comeback. .
- A recent asset purchase should increase full-year EPS by $.04 to $.05 and sales by $7-9 million. .
- With shares undervalued and gun sales coming back, I think Smith and Wesson presents a strong buying opportunity.