According to Firearm Chronicles
While most people aren’t overly interested in the stock market–that includes a lot of people who have money invested, to be fair–there is a good reason to pay attention to the stock prices of firearm companies.
For the last several months, the firearm industry has had plenty of good news. After all, sales have skyrocketed. Plus, since these are new gun owners, that means the customer base is growing overall. They’re not just selling to the same people as they were before.
That’s great news.
Now, investors are starting to see that and react accordingly.
The latest surge is probably driven by “unfilled demand from Covid, recent buying due to civil unrest and continued and perhaps heightened buying due to the upcoming election and potential for increased regulation following the election,” Lake Street analyst Mark Smith wrote in a note Tuesday. The last two items will drive “continued demand in June and through the fall,” he said.
Others on Wall Street agree. Cowen’s guns and ammunition analyst Cai Von Rumohr told clients that while virus lockdowns are starting to ease, demand for guns may “remain strong as civil unrest increases with the George Floyd protests.” Near-term firearms demand probably also would be “bolstered” if the election prospects for Democratic presidential nominee Joe Biden strengthen, given the party’s “more restrictive stance on gun control.”