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Guns Join Clorox Wipes as Top Pick in Times of Global Coronavirus Pandemic

Published 08/03/2020, 01:50 PM
Updated 08/03/2020, 01:51 PM
© Reuters.
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By Christiana Sciaudone

Investing.com -- Americans reached for Clorox (NYSE:CLX) wipes, canned foods and guns as they locked down against the global coronavirus pandemic.

More than 3.6 million firearm background checks were conducted by the FBI in July, the most for the month in over 20 years of data. It's the third-highest number ever, following March and June 2020.

Smith & Wesson 's parent company, American Outdoor Brands (NASDAQ:SWBI), rose almost 8%. Other gunmakers also rose: Sturm Ruger & Company Inc (NYSE:RGR) is up 5.7%, Vista Outdoor (NYSE:VSTO) rose 5.1%, Olin (NYSE:OLN) Corp. was up 1.9%, Sportsman's Warehouse (NASDAQ:SPWH) rose 3.2%, and Axon Enterprise (NASDAQ:AAXN) rose 5.9%.

Last week, Smith & Wesson Brands said its board of directors approved a previously announced separation of its outdoor products. The two companies will be Smith & Wesson Brands, which will include the firearms business, and American Outdoor Brands, which will include the outdoor products and accessories business. 

In June, Smith & Wesson reported fiscal year net sales of $678 million, up 6.3% from the previous year. Shares are trading at their highest in more than four years.

Last week, Remington Arms filed for bankruptcy protection for the second time in two years, Syracuse.com reported. The company has continued to struggle with slumping sales. In 2019, the company saw net sales of $437.5 million, less than 2016 revenue of $865 million.

 

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