Quality Gun Stocks make for very interesting investment ideas. And while some people feel that investing in gun stocks is immoral, they can still be profitable. If you don’t believe me…
Take a quick look at the (2013) year to date out-performance of the arms and ammunitions industry, relative to the S&P-500.
So in this short blog post we’ll review some quality gun stock ideas that you can invest in today. Now let’s cut to the chase…
Three Top Quality Gun Stocks:
If you’re looking for quality gun stocks, look no further. The three stock ideas below are high quality gun companies that all have publicly traded stocks you can trade online through your brokerage account. Of course you should do your own research and due diligence, but this is a great starting point for top quality gun stocks…
Cabela’s Incorporated (NYSE:CAB): This direct-retailer of hunting and fishing equipment is a no-brainer when you think of quality gun stocks. CAB sells it’s outdoor gear through a network of 50 retail stores (as of November 12, 2013) as well as online. Headquartered in Nebraska this is an all-American company that might make a good long term investment as the fundamentals, (especially the sales) are looking strong. The P/E ratio is just north of 20 though so you may want to wait for a pullback before trying to buy this quality gun stock. Judging by the current chart pattern I’d bet you could get a cheaper entry in the weeks to come.
Smith & Wesson Holding Corp (NASDAQ:SWHC): This firearm company might be the epitome of quality gun stock. SWHC makes handguns, rifles and all kinds of other guns. This is a gun stock through and through. The company has twice as much cash as debt and at a current P/E under 10 it looks fairly valued relative to earnings. If you’re an individual investor you might also appreciate that this stock is currently trading under $15, so you can buy lots of shares without breaking the bank.
Sterm, Ruger & Co. Inc. (NYSE:RGR) This quality gun stock makes firearms and casings. The firearms segment sells pistols, revolvers and shotguns. Sales of guns are done through independent retailer. By the way, RGR is the only quality gun stock with a dividend, currently yielding just over 3%. It’s also worth noting, RGR has the higher profit margin out of all the quality gun stocks mentioned here today and a large amount of institutional shareholders.
So there are three quality gun stocks that you can investigate further to see if they meet your investing or trading criteria. I hope you appreciated these stock ideas. With any luck this fire power can really help you round out your portfolio.
The Hidden Benefit of Quality Gun Stocks:
You might already know this, but one of the interesting quality gun stocks are so interesting to me is because they present a bit of a hedge on the economy. Of course gun manufacturers are dependent on good sales, but Americans might be more likely to buy guns in times of uncertainty and fear (such as when the economy is tanking).
With shows like Doomsday Preppers gaining popularity American demand for guns probably won’t dry up anytime soon. I guess at the end of the day if you aren’t secure in your finances, at least you can protect your physical assets, property and family with guns.
How To Find Quality Gun Stocks Online [VIDEO]
Some of the more sensitive investors are afraid to admit this (or don’t want to profit from it) but owning quality gun stocks can be a neat way to diversify your portfolio. What do you think?
Are you investing in any quality gun stocks?
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