Gun stocks rallied for a second day on Tuesday, as investors again bet that new restrictions rolled out by President Barack Obama not only wouldn’t deter sales but would propel them, reports MarketWatch.
Smith & Wesson shares surged as much as 14% and Sturm, Ruger & Co. climbed as much as 9%.
The moves also comes as Smith & Wesson raised its profit guidance for the April-ending fiscal year.
Smith & Wesson shares have surged 180% in the last 12 months, and Sturm, Ruger is up 89%.
The performance of Smith & Wesson stock over the last 5 years:
Obama's executive order would require more gun sellers to get licenses and more gun buyers to undergo background checks.
Also see: Gun Ownership and the Second Amendment