Investors should buy Smith & Wesson shares on potential upside in gun demand if Hillary Clinton gets elected, according to Cowen, which reiterated its outperform rating on the gun manufacturer.
"While upcoming comps get much more difficult, a potential Clinton presidential win could bolster the demand surge as occurred in Obama's 2008 victory," analyst Cai von Rumohr wrote in a note to clients Tuesday.
The analyst cited a 12.6 percent year-over-year surge in background checks during the month of October, according to NICS (National Instant Criminal Background Check System). Background checks for hand guns specifically were up 19 percent month-over-month versus the 10 percent historical 10-year average, according to the Cowen report, citing NICS data.
