Smith & Wesson Brands, Inc. (SWBI) has shown EPS growth, but lagged behind due to government budget cuts

From Yahoo Finance: 2025-04-08 18:12:00

In the midst of ongoing conflicts worldwide, the defense industry has seen a surge in profits as investors buy up stocks. Global defense spending reached a record high of $2.46 trillion in 2024, with significant budget increases in Asia, Europe, the Middle East, and North Africa. European capitals are unlocking billions to boost their militaries, leading to double-digit returns for defense contractors. However, American defense stocks have lagged due to concerns over government budget cuts and reduced military spending in the future. Despite this, analysts remain optimistic about the sector’s future.

Smith & Wesson Brands, Inc. (SWBI) is a leading firearms manufacturer with a 20.77% EPS growth over the past five years. Despite a challenging environment, the company remains focused on innovation and plans to launch new products in the coming months to drive momentum. Wall Street analysts are bullish on SWBI, with a consensus Buy rating. While SWBI ranks 8th among defense stocks with the highest EPS growth, some believe that AI stocks hold greater promise for delivering higher returns in a shorter timeframe. Investors are encouraged to explore opportunities in both defense and AI sectors for potential growth.



Read more at Yahoo Finance: Is Smith & Wesson Brands, Inc. (SWBI) Among Defense Stocks with the Highest EPS Growth in 5 Years?