Shares of Smith & Wesson Brands (NASDAQ:SWBI) were tumbling over 12% in morning trading Wednesday as the result of the presidential election remained clouded.
Regardless of who is president, the Senate looks like it could remain in control of Republicans. Along with a decidedly conservative Supreme Court, the market may be thinking there is little need to buy a gun right away.
While that may be true, the factor driving gun sales these days hasn't been fear of new gun control laws, but rather the need for personal protection as rioting and civil unrest have spread to numerous cities across the country.
The sell-off in Smith & Wesson's shares -- and those of Sturm, Ruger (NYSE:RGR), which are down 10% -- should be considered a buying opportunity for investors as consumer demand for firearms isn't going away anytime soon.