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Smith & Wesson (SWBI) Stock Sinks As Market Gains: What You Should Know

Zacks.com logo Zacks.com 11/5/2021

Smith & Wesson (SWBI) closed the most recent trading day at $21.99, moving -1.17% from the previous trading session. This move lagged the S&P 500's daily gain of 0.37%.

Prior to today's trading, shares of the firearm maker had gained 4.71% over the past month. This has outpaced the Consumer Discretionary sector's gain of 2.93% and lagged the S&P 500's gain of 8.94% 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.

SWBI's full-year Zacks Consensus Estimates are calling for earnings of $5.05 per share and revenue of $924.3 million. These results would represent year-over-year changes of +11.23% and -16.52%, respectively.

Investors should also note any recent changes to analyst estimates for SWBI. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. SWBI is holding a Zacks Rank of #4 (Sell) right now.

Digging into valuation, SWBI currently has a Forward P/E ratio of 4.41. Its industry sports an average Forward P/E of 11.41, so we one might conclude that SWBI is trading at a discount comparatively.

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 59, which puts it in the top 24% 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.

To follow SWBI in the coming trading sessions, be sure to utilize Zacks.com.

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