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Two Days After Trump's Victory, Gun Stocks are Still Slumping
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On Thursday, shares of gun makers are still slumping after Donald Trump’s stunning presidential victory earlier this week. While many sectors rallied in the wake of the Republican candidate’s win, others, like guns, saw investor hesitation take effect almost immediately.
Sturm Ruger & Co. (RGR - Free Report) , one of the biggest firearms manufacturer in the U.S., closed the day Wednesday down 14.5%, and today, the stock is still falling, down over 9.5% to $49.90 per share in midday trading.
Top rival Smith & Wesson , too, is seeing its stock drop as a result of the presidential election outcome. SWHC closed the day yesterday down 15%. Like Sturm Ruger, Smith & Wesson is slumping again today, down almost 5% to $22.96 per share in midday trading.
Analysts and investors think that with a Trump presidency, potential gun buyers are more confident in the protection of gun-carry laws, and the desire to rush out and buy a firearm has settled down, leading to a drop in stock price.
Earlier this year, especially after gun-related tragedies, gun sales ticked upwards when President Obama and other lawmakers called for the tightening of gun-control laws throughout the country. That “buy ‘em all while you still can” mentality has definitely driven gun sales recently, sending stocks like RGR and SWHC soaring.
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Two Days After Trump's Victory, Gun Stocks are Still Slumping
On Thursday, shares of gun makers are still slumping after Donald Trump’s stunning presidential victory earlier this week. While many sectors rallied in the wake of the Republican candidate’s win, others, like guns, saw investor hesitation take effect almost immediately.
Sturm Ruger & Co. (RGR - Free Report) , one of the biggest firearms manufacturer in the U.S., closed the day Wednesday down 14.5%, and today, the stock is still falling, down over 9.5% to $49.90 per share in midday trading.
Top rival Smith & Wesson , too, is seeing its stock drop as a result of the presidential election outcome. SWHC closed the day yesterday down 15%. Like Sturm Ruger, Smith & Wesson is slumping again today, down almost 5% to $22.96 per share in midday trading.
Analysts and investors think that with a Trump presidency, potential gun buyers are more confident in the protection of gun-carry laws, and the desire to rush out and buy a firearm has settled down, leading to a drop in stock price.
Earlier this year, especially after gun-related tragedies, gun sales ticked upwards when President Obama and other lawmakers called for the tightening of gun-control laws throughout the country. That “buy ‘em all while you still can” mentality has definitely driven gun sales recently, sending stocks like RGR and SWHC soaring.
Stocks that Aren't in the News…Yet
You are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. Many of these companies are almost unheard of by the general public and just starting to get noticed by Wall Street. They have been pinpointed by the Zacks system that nearly tripled the market from 1988 through 2015, with a stellar average gain of +26% per year. See these high-potential stocks now >>