Firearm Stocks Surge Amid Gun Control Debate

firearm stocks

December 8, 2013 / Comments (1)

Firearms News

Talk of tighter gun control rules is giving a boost to gun stocks.

Following the recent spate of mass shootings in California, Paris and other areas, firearms are back in the sights of politicians. That's stoking demand for guns by anyone who might want one and now fears they will get harder to obtain.

Shares of three publicly traded stocks with the heaviest concentration on firearms —  Sturm, Ruger (RGR), Smith & Wesson (SWHC) and ammo maker Vista Outdoor(VSTO) —  have jumped 70% on average this year as investors think already-strong demand for guns could continue to increase as buyers rush to buy more.

The gun companies' share growth has surpassed the 0.9% gain by the Standard & Poor's 500 this year.

Just Monday, their shares rose an average of of 5.2% as the broad market fell.

Sale
Howard Leight by Honeywell Impact Sport Sound Amplification...
39,357 Reviews
Howard Leight by Honeywell Impact Sport Sound Amplification...
  • Built-in directional microphones amplify range commands and other ambient sounds to a safe 82 dB, providing more natural listening and enhanced...
  • Actively listens and automatically shuts off amplification when ambient sound reaches 82 dB; Noise Reduction Rating (NRR): 22
  • Features low profile earcups for firearm stock clearance; adjustable headband for secure fit; compact folding design for convenient storage; classic...

That comes one day after New York City Mayor Bill de Blasio put out a statement that advocated for the stop of “the flow of both public pension funds and private U.S. dollars into the hands of gun manufacturers who make and market the assault weapons used by terrorists, criminals and the mentally ill.”

Investors are betting consumers afraid of new gun rules will load up now for fear that new, more restrictive rules will be passed.

“The increased call for firearms laws, restrictions and regulations leads to the increased demand,” for firearms, says  Brian Ruttenbur, analyst at BB&T.

Firearms sales are up 4.7% this year compared with the same period in 2014, Ruttenbur says, citing data from National Instant Criminal Background Check System for consumer background gun checks.

No products found.

More Americans had their backgrounds checked purchasing guns on Black Friday than any day on record, according to data released by the FBI. The criminal background system  processed 185,345 requests on Nov. 27, one of the largest retail sales days in the country.

clickheretocontinuereading-new

Want to know more? Check out these related articles on our site:

2nd Amendment: 5 Reasons to Carry a Gun

The Ultimate Survival Gun Safe Guide

Kids And Guns – How Young Is Too Young?

Leave a Reply

Your email address will not be published. Required fields are marked *