#3 - Vista (NYSE:VSTO)
Before the world virtually stopped, Vista (NYSE:VSTO) posted strong first-quarter earnings in early February. The company was seeing strong ammunition sales as well as its other products that support firearms purchases.
Vista is not a pure-play gun stock anymore. In July 2019 the company sold off its Savage Arms and Stevens firearms brands. In the short term, that may have hurt the stock as gun sales have taken off. But, as its last earnings report shows, the company is still benefiting from strong ammunition sales. That may work in the company’s favor.
Throughout the coronavirus pandemic, states have been left to their own devices as far as how to handle the definition of an essential versus non-essential business. That means that in some states at least ammunition sales are still being allowed. So while it may become harder to buy ammunition in some areas of the country, in other states it will be (relatively) business as usual.
And business is brisk. VSTO stock is up nearly 30% for the year. Like other gun stocks it is trading above both its 50- and 200-day moving averages suggesting that the stock is still in a bullish pattern.
About Vista Outdoor
Vista Outdoor Inc designs, manufactures, and markets outdoor recreation and shooting sports products. in the United States and internationally. The Kinetic Group segment designs, develops, distributes, and manufactures ammunition, primers, and components for hunters, recreational shooters, federal and local law enforcement agencies, and the military.
Read More - Current Price
- $44.25
- Consensus Rating
- Hold
- Ratings Breakdown
- 0 Buy Ratings, 6 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $41.20 (6.9% Downside)
