Keep An Eye On Gun Stocks As FBI Gun Background Check Data Continues To Break Records
This week, the FBI reported 2,197,169 background checks for gun sales in the month of July, breaking last year’s record for the month by nearly 600,000. Incredibly, July marks the 15th consecutive record-breaking month and more good news for gun stocks.
According to Mass Shooting Tracker, there were 693 people killed or wounded in mass shootings in the months of June and July, more than any two months in the past four years. The most high-profile tragedy during that two-month span was the killing of 49 people inside the Pulse nightclub in Orlando on June 12.
Gun sales typically spike following news of mass shootings, as gun enthusiast fear potential changes to gun legislation in response to the news. Smith & Wesson shareholders have enjoyed a 21.5 percent gain since June 1.
This year, fear levels surrounding potential changes to gun laws have been high due to campaign rhetoric from Hillary Clinton and other Democrats, who have made gun violence a central part of their platform.
“Certainly, this is a unique time in our history, because for the first time ever, we have the nominee of a major political party, one with a very reasonable likelihood of winning the presidency… actively campaigning against the lawful commerce in arms,” Sturm, Ruger CEO Michael Fifer said on an earnings call earlier this week.
Disclosure: the author holds no position in the stocks mentioned.
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