Back to top

Image: Bigstock

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

Read MoreHide Full Article

Smith & Wesson (SWBI - Free Report) closed at $25.69 in the latest trading session, marking a -1.98% move from the prior day. This change lagged the S&P 500's daily loss of 0.33%.

Prior to today's trading, shares of the firearm maker had gained 27.54% over the past month. This has outpaced the Consumer Discretionary sector's loss of 2.09% and the S&P 500's gain of 2.89% in that time.

Wall Street will be looking for positivity from SWBI as it approaches its next earnings report date. The company is expected to report EPS of $1.26, up 29.9% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $296.2 million, up 6.56% from the prior-year quarter.

SWBI's full-year Zacks Consensus Estimates are calling for earnings of $4.40 per share and revenue of $903.4 million. These results would represent year-over-year changes of -3.08% and -18.41%, respectively.

Any recent changes to analyst estimates for SWBI should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 99.55% higher. SWBI is currently a Zacks Rank #1 (Strong Buy).

Investors should also note SWBI's current valuation metrics, including its Forward P/E ratio of 5.96. This valuation marks a discount compared to its industry's average Forward P/E of 14.36.

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 20, putting it in the top 8% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow SWBI in the coming trading sessions, be sure to utilize

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Smith & Wesson Brands, Inc. (SWBI) - free report >>

Published in