Record Sales Are Driving This Stock's Price To New Highs

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  • 2016 is on pace to be another record year for gun sales in the United States.
  • Smith & Wesson has already been cashing in on the spike in demand for firearms.
  • In conjunction with record demand for firearms, Smith & Wesson should deliver record sales and earnings in 2017.

By Michael Vodicka

2016 is on pace to be another record year for gun sales in the United States. According to a recent report released by the FBI, gun sales hit a 17th consecutive monthly record in October, up 27% from the same period last year. This spike in demand is being driven by two powerful forces.

The first is crime. Although the national crime rate remains near 20-year lows, crime rates in major cities have spiked. For example, Chicago recently recorded its 600th murder in 2016, a number already 100% higher than that rate in 2015.

Demand for guns is also being driven by politics. Gun owners and potential buyers worry about stricter gun laws. This is pulling demand forward and prompting consumers to purchase firearms sooner rather than later.

Looking forward, I don't expect either of these forces to fade away quickly - in fact, I am expecting gun sales to hit another monthly record in December and close the year at an all-time high.

That's why it's a great time to take a fresh look at one of the most undervalued growth stocks in the S&P 500. This global leader's share price is up more than 145% in the last three years. The company is on pace to deliver record sales in 2016 and earnings are projected to grow another 35% in 2017.

Snag Big Potential Gains In 2017 And Beyond

Smith & Wesson (SWHC) is a firearms manufacturer based in the United States. Since its founding in 1852, the company has grown into a global leader in firearms production.

Today, it supplies police departments, military forces, and recreationalists across the world.

Smith & Wesson has already been cashing in on the spike in demand for firearms. Revenue is up 114% and shares are up 144% in the past three years. Take a

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