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Saturday, March 12, 2016

What Has This Election Done to Gun Stocks?

Gun stocks are soaring once again, and the fight for the White House is expected to help fuel sales in 2016. 

Shares of Smith & Wesson (SWHC) and Sturm Ruger (RGR) have enjoyed huge gains since President Barack Obama’s inauguration on Jan. 20, 2009. Smith & Wesson’s stock is up a whopping 957%, and Ruger has rallied 1,078%. By comparison, the broader S&P has risen 135% over the same period. 

Since the start of 2016, Smith & Wesson and Ruger have jumped 23% as of Friday’s close. Vista Outdoor (VSTO), the owner of Savage Arms and ammunition maker Federal Premium, is up 18.8%. 

Both gun makers have reported a recent surge in demand, thanks in part to uncertainty over the presidential race and fears that new gun-control regulations could be coming. Those concerns resurfaced this year with President Obama’s executive orders expanding background checks and the death of Supreme Court Justice Antonin Scalia.

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