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Smith & Wesson (SWBI) Dips More Than Broader Markets: What You Should Know

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Smith & Wesson (SWBI - Free Report) closed at $24.39 in the latest trading session, marking a -1.01% move from the prior day. This change lagged the S&P 500's daily loss of 0.38%. Meanwhile, the Dow lost 0.85%, and the Nasdaq, a tech-heavy index, added 0.43%.

Heading into today, shares of the firearm maker had gained 12.26% over the past month, outpacing the Consumer Discretionary sector's gain of 6.98% and the S&P 500's gain of 6.78% in that time.

Investors will be hoping for strength from SWBI as it approaches its next earnings release. The company is expected to report EPS of $0.49, up 1533.33% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $201.80 million, up 63.18% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.85 per share and revenue of $862.10 million, which would represent changes of +125.61% and +27.08%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for SWBI. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.23% higher. SWBI is holding a Zacks Rank of #1 (Strong Buy) right now.

Digging into valuation, SWBI currently has a Forward P/E ratio of 13.32. For comparison, its industry has an average Forward P/E of 31.35, which means SWBI is trading at a discount to the group.

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 5, putting it in the top 2% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on

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