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

Smith & Wesson (SWBI) closed the most recent trading day at $17.40, moving -1.67% from the previous trading session. This change lagged the S&P 500's daily loss of 0.72%.

Coming into today, shares of the firearm maker had lost 2.56% in the past month. In that same time, the Consumer Discretionary sector gained 1.84%, while the S&P 500 gained 6.13%.

SWBI will be looking to display strength as it nears its next earnings release. On that day, SWBI is projected to report earnings of $1.04 per share, which would represent year-over-year growth of 82.46%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $273.5 million, up 17.06% from the year-ago period.

SWBI's full-year Zacks Consensus Estimates are calling for earnings of $4 per share and revenue of $1.01 billion. These results would represent year-over-year changes of +387.8% and +48.85%, respectively.

Any recent changes to analyst estimates for SWBI should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. Within the past 30 days, our consensus EPS projection remained stagnant. SWBI currently has a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, SWBI is holding a Forward P/E ratio of 4.43. This valuation marks a discount compared to its industry's average Forward P/E of 14.92.

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 56, which puts it in the top 23% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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


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