Smith & Wesson (SWBI) closed at $21.88 in the latest trading session, marking a -1.66% move from the prior day. This change lagged the S&P 500's 1.05% gain on the day. Meanwhile, the Dow gained 1.44%, and the Nasdaq, a tech-heavy index, added 0.66%.
Prior to today's trading, shares of the firearm maker had gained 28.84% over the past month. This has outpaced the Consumer Discretionary sector's loss of 3.29% and the S&P 500's loss of 1.56% in that time.
Wall Street will be looking for positivity from SWBI as it approaches its next earnings report date. The company is expected to report EPS of $0.46, up 1433.33% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $201.80 million, up 63.18% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.78 per share and revenue of $862.10 million. These totals would mark changes of +117.07% and +27.08%, respectively, from last year.
Any recent changes to analyst estimates for SWBI should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 108.82% higher within the past month. SWBI is currently a Zacks Rank #1 (Strong Buy).
Digging into valuation, SWBI currently has a Forward P/E ratio of 12.53. Its industry sports an average Forward P/E of 29.44, so we one might conclude that SWBI is trading at a discount comparatively.
The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 5, putting it in the top 2% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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