#4 - Olin Corporation (NYSE:OLN)
Moving even further away from pure-play gun stocks is Olin Corporation (NYSE:OLN). The company is better known as a manufacturer and distributor of chemical products. Unlike many of the stocks in this presentation, OLN stock is down for the year as is the entire sector.
But to understand why Olin is on this list, you have to look a little closer. The company is primarily known for its Chlor Alkali Products and Vinyls segments, both of which are down this year. However, it also has a Winchester segment (yes, that Winchester) that supplies ammunition products for hunters and recreational shooter as well as law enforcement agencies.
And that segment is set to provide a catalyst. The United States Army awarded Winchester a contract to manage and operate the Lake City Army Ammunition Plant in Independence, Missouri. This will be a multi-year contract that should contribute to the company’s annual earnings as early as this calendar year.
Because Olin has only a peripheral exposure to the gun industry, its stock is reviewed by more analysts. The 14 analysts that have offered opinions of the stock in the last 12 months give the stock a hold and a price target of just over $17. That would be a gain of over 24% from the stock’s current level.
About Olin
Olin Corporation manufactures and distributes chemical products in the United States, Europe, Asia Pacific, Latin America, and Canada. It operates through three segments: Chlor Alkali Products and Vinyls; Epoxy; and Winchester. The Chlor Alkali Products and Vinyls segment offers chlorine and caustic soda, ethylene dichloride and vinyl chloride monomers, methyl chloride, methylene chloride, chloroform, carbon tetrachloride, perchloroethylene, hydrochloric acid, hydrogen, bleach products, potassium hydroxide, and chlorinated organics intermediates and solvents.
Read More - Current Price
- $33.45
- Consensus Rating
- Hold
- Ratings Breakdown
- 6 Buy Ratings, 8 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $50.14 (49.9% Upside)
