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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 the most recent trading day at $24.93, moving -1.23% from the previous trading session. This change lagged the S&P 500's daily loss of 0.46%.

Coming into today, shares of the firearm maker had lost 16.12% in the past month. In that same time, the Consumer Discretionary sector lost 4.51%, while the S&P 500 gained 1.69%.

Investors will be hoping for strength from SWBI as it approaches its next earnings release. The company is expected to report EPS of $1.26, up 29.9% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $296.2 million, up 6.56% from the year-ago period.

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. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection remained stagnant. SWBI is currently sporting a Zacks Rank of #1 (Strong Buy).

Digging into valuation, SWBI currently has a Forward P/E ratio of 5.74. This valuation marks a discount compared to its industry's average Forward P/E of 13.02.

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 35, which puts it in the top 14% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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