Smith & Wesson, Inc. (NASDAQ:SWBI) has had great results in 2020 and so far this year. Following the spinoff last year, the company is now solely focused on firearms. Despite surging to around $39 a share, the stock has trended
Load Up On Smith & Wesson While It Is Undervalued
Summary
- Smith & Wesson had a great quarter, with $1.7 in EPS, driven by higher firearms demand.
- The stock has declined from an all-time high of around $39.6, due to lower firearms sales in June.
- The $50M buyback program, along with a 60% increase of its dividend will continue to return value to shareholders.
- Smith & Wesson remains a strong player in the firearms industry, and the stock continues to be undervalued, even if we factor in declining firearms sales.
Value of Stocks is an independent provider of stock analysis, focused on deep value stocks, net-nets and special situations. Understanding the business well enough to value it, will allow you to buy stocks under their true value. We look for stocks globally that we can thoroughly analyze and value.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of SWBI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.