Back to top

Image: Bigstock

Smith & Wesson (SWBI) Gains But Lags Market: What You Should Know

Read MoreHide Full Article

Smith & Wesson (SWBI - Free Report) closed at $21.04 in the latest trading session, marking a +0.29% move from the prior day. This change lagged the S&P 500's 0.3% gain on the day.

Prior to today's trading, shares of the firearm maker had gained 1.55% over the past month. This has outpaced the Consumer Discretionary sector's loss of 5.34% and the S&P 500's loss of 2.37% in that time.

Investors will be hoping for strength from SWBI as it approaches its next earnings release. On that day, SWBI is projected to report earnings of $1.37 per share, which would represent year-over-year growth of 47.31%. Our most recent consensus estimate is calling for quarterly revenue of $277.9 million, up 11.73% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.05 per share and revenue of $924.3 million. These totals would mark changes of +11.23% and -16.52%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for SWBI. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection remained stagnant. SWBI is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that SWBI has a Forward P/E ratio of 4.16 right now. This represents a discount compared to its industry's average Forward P/E of 11.4.

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 43, which puts it in the top 17% 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.

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


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