Smith & Wesson: Short Term Pain Presents An Opportunity

REITer's Digest
3.98K Followers

Summary

  • Smith & Wesson reported soft earnings due to a normalizing firearms market.
  • Firearm manufacturing has historically proven to be a recession resistant industry and Smith & Wesson is an industry leader with a solid operating history.
  • A steep drop in share prices creates an unusual opportunity for shareholders given the firm’s balance sheet and market position.
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Introduction

Recently, Smith & Wesson (NASDAQ:SWBI) reported second quarter earnings results for fiscal 2022. The quarter fell well short of expectations as sales fell 7.3% year over year for the quarter. The sales drop was a result of soft demand following an

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3.98K Followers
REITer's Digest

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.

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