The COVID-19 pandemic resulted in a consumer rush to essential services, so-called "sin" products like alcohol and cannabis, and to weapons. Earlier this year, I’d suggested that investors should look to jump on this trend. In the wake of the killing of George Floyd, the United States is experiencing significant social unrest. Unsurprisingly, this has also led to a spike in gun sales.
Ruger & Sturm (NYSE:RGR) is a top designer, manufacturer, and seller of firearms. Shares of Ruger & Sturm have climbed 69% over the past three months as of close on June 12. The company released its first-quarter 2020 results on May 6.
Net sales increased to $123.6 million in Q1 compared to $114.0 million in the prior year. Gross profit climbed to $36.0 million over $32.5 million in Q1 2019. Moreover, Sturm & Ruger boasts an immaculate balance sheet.
Axon Enterprise (NASDAQ:AAXN) is a developer, manufacturer, and seller of conducted energy weapons (CEWs) worldwide. Shares of Axon Enterprise have climbed 48% over the past three months. The company released its first quarter 2020 results on May 7. Increased demand for security in these uncertain times has powered growth at Axon Enterprise.
Revenue at Axon increased 27% year-over-year to $147 million. Growth was driven by its Software & Sensors product segment, which increased 41% from the prior year. It has seen impressive demand for Axon Cloud software and Axon Body 3, its latest generation camera that features LTE-connectivity and location-based services.
