Is Smith & Wesson Destined for Greatness?http://www.fool.com/investing/general/2013/03/22/is-smith-wesson-destined-for-greatness.aspx Alex Planes
March 22, 2013
Investors love stocks that consistently beat the Street without getting ahead of their fundamentals and risking a meltdown. The best stocks offer sustainable market-beating gains, with robust and improving financial metrics that support strong price growth. Does Smith & Wesson (NASDAQ: SWHC) fit the bill? Let's take a look at what its recent results tell us about its potential for future gains.
What we're looking for
What the numbers tell you
How we got here and where we're going
Smith & Wesson's come a long way from its history as the gun maker behind America's first revolvers, but in recent years its financial progress has been surpassed by that of fellow gun maker Sturm, Ruger (NYSE: RGR), which has a fast-growing dividend and is also debt-free. Both companies have seen their fortunes soar in the past few years. Whether you wish to attribute it to hoarding over fears of gun control, reactions to a dangerous world, or simply rising interest in recreational shooting, the results are obvious on the bottom line: It may never be a better time to be a gun maker.
However, the best time to be a gun maker may already be past. Despite a recent rejection of assault-rifle bans in Congress, a number of high-ranking politicians have pushed back hard agai