The global COVID-19 pandemic has stirred mass panic among the populace in Canada and the United States. Citizens have taken to hoarding with toilet paper and other items being stripped from grocery store shelves only to be replaced days later as supply chains remain intact. Officials have urged citizens to buy only what they need, but this has failed to stop panic buying.
Fear is rising in this crisis, and in times like these we have seen weapon sales increase. Recent numbers indicate that this trend is emerging again. The National Instant Criminal Background Check System said it responded to inquires on 2.8 million prospective gun buyers in February.
This was the third-highest monthly total since the system was created in 1998. It was up two million from the previous year. Even Canadian weapon dealers have seen an increase in gun and ammunition sales.
Sturm Ruger (NYSE:RGR) is one of the largest firearms manufacturers in the United States.
Its shares have dropped 17% over the past month as of close on March 20. Gun sales were down sharply in its most recent quarterly report. The stock is trading in the middle of its 52-week range.
American Outdoor Brands (NASDAQ:AOBC) is another top firearms manufacturer. Its stock has dropped 28% month over month. Shares of American Outdoor also fell after a disappointing earnings report. Both of these companies have a chance for a bounce back as interests in firearms and ammunition has spiked in response to this evolving crisis.
