5 Gun Stocks to Watch for Investors With a Steady Hand
As we draw closer to the U.S. Presidential elections, keep these five gun stocks in your crosshairs
After years in the dog house, gun stocks have come back with a vengeance so far in 2020. And, unlike in the last boom (driven by gun control fears), there have been several tailwinds moving the needle this time.
Firstly, the novel coronavirus pandemic. With uncertainty in the air, and millions of Americans stuck at home, gun demand far outstripped supply. Then, this summer’s civil unrest further fueled firearms sales growth. Not just with gun aficionados, but first-time owners as well.
And now, with the U.S. Presidential election in November, a make-or-break moment for gun stocks could be around the corner. If President Trump wins re-election, this hot sector may take a breather. In 2016, Trump’s surprise win caught gun-makers off guard, leaving them with a glut of firearms and ammunition, as demand cratered.
But, a victory by Democratic candidate Joe Biden could further fuel the rally. Why? Obama-era fears of a “gun grab” may be back on the table. Especially if the Democrats take back the U.S. Senate as well.
On the other hand, being bullish (or bearish) on gun stocks may not be as binary as it was back in 2016. Given a Trump upset could fuel even more civil unrest, gun sales may remain strong even if he wins a second term.
So, what’s the play here? While an electoral upset could take the wind out this sector yet again, continued fear and unrest may mean gun stocks remain red hot. Keep these five in your crosshairs: