Posted March 28, 2017 7:23 am by Comments

By Christen Smith

Financial writer and market analyst Rich Duprey argues the rumored “Trump slump” should be no reason to avoid investing in gun manufacturers — rather, it’s a perfect time to buy, he said Monday.
“If people aren’t buying guns, manufacturers can’t profit, and their stocks will tank,” he wrote in an article published by the Motley Fool, an international investor service. “While there is indeed a slowdown under way and the stocks of gunmakers have borne the brunt of it, the industry is inherently cyclical and the current downtrend is nowhere near as apocalyptic as has been portrayed.”
Duprey said the three top publicly traded gun companies — American Outdoor Brands, Sturm Ruger, and Olin — are still worth the investment due to “strong management teams and otherwise great operations.”
His sentiment was echoed earlier this month by the National Rifle Association and reinforces a long-term trend identified by the National Shooting Sports Foundation that despite last year’s record breaking gun sales, the industry isn’t falling apart.
“Comparing current data to the record high points doesn’t prove that sales have plummeted,” the NRA said. “It does indicate that the number of background checks performed – and so the number of permit applications and/or firearms purchases

Source: Guns.com

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