The terrible and tragic shooting of five police officers in Dallas on Thursday night — with another 11 officers shot — represents the unfortunate escalation of social tensions between law enforcement and social activists.
Source: Thebarrowboy via Flickr
There are many causes, including uneven economic growth, mistakes by individual officers and rogue protesters. Any solution is likely to be long in coming, necessitating a national healing that just doesn’t seem likely amid one of the most contentious presidential elections in history.
For the cold-blooded stock market, this is just another buying opportunity. Shares of companies likely to see a boost in the wake of all this, including gun makers and body camera producers, are surging higher in trading on Friday.
Here are seven worth a look:
Gun Stocks in Dallas Aftermath: Smith & Wesson (SWHC)
Shares of gun maker Smith & Wesson Holding Corp (NASDAQ:SWHC) have surged back to their March high, up more than a third off of their early June low.
The stock was upgraded back in mid-June by analysts at Craig Hallum on solid results and strong forward guidance. The company will next report results on Aug. 25 after the bell.
Analysts are looking for earnings of 54 cents per share on revenues of nearly $200 million.
Gun Stocks in Dallas Aftermath: Ruger (RGR)
Gun maker Sturm, Ruger & Company (NYSE:RGR) is rising to challenge the upper end of its four-month trading range on Friday in anticipation of increased demand.
Shares are down more than 10% from their high in March, which represented a retest of the early 2014 high near $80.
The company will next report results on July 28 after the bell. Analysts are looking for earnings of $1.15 per share on revenues of $164 million.
Gun Stocks in Dallas Aftermath: Taser International (TASR)
Taser International, Inc. (NASDAQ:TASR) is the well-known producer of non-lethal incapacitating weapons and body cameras.
The company has a $1.4 billion market cap and a float of 51 million shares with a relatively high short interest of 22% — so short-covering could drive further upside.
Shares have already doubled from their January low.
Gun Stocks in Dallas Aftermath: Digital Ally (DGLY)
Digital Ally, Inc. (NASDAQ:DGLY) produces digital imaging and storage products for law enforcement and security applications.
Products including in-car digital video and audio recorders built into rear-view mirrors, video surveillance systems, hands-free automatic activation of body-worn cameras and in-car video systems, and hand-held laser speed guns.
The company has a market cap of just $34 million and a small float of 4.4 million shares. Short interest is just 13%.
Gun Stocks in Dallas Aftermath: Vicon (VII)
Vicon Industries, Inc. (NYSEMKT:VII) makes video management software used by the security sector including burglar alarm and surveillance systems.
The company is small, with a $9.8 million market cap. It is still working toward profitability, with a trailing twelve month operating loss of $3.8 million on revenues of $43.3 million.
Cash on hand totals $2.2 million.
Gun Stocks in Dallas Aftermath: Copsync (COYN)
Copsync Inc (NASDAQ:COYN) based in the Dallas area, operates a police mobile data information system that connects squad cars and precincts in real time.
The system is designed to more efficiently and quickly route officers to threats vs. radios and voice dispatchers. The company has a $14.5 million market cap and is working towards profitability, with a trailing twelve month operating loss of $4.9 million on $6.2 million in revenue.
The company has $5.1 million in cash on hand.
Gun Stocks in Dallas Aftermath: Image Sensing Systems (ISNS)
Image Sensing Systems, Inc. (NASDAQ:ISNS) makes video and radar processing systems used for traffic, security, police and parking applications.
The company has a $13.7 million market cap and is profitable, posting operating earnings of $767,000 over the past twelve months on revenues of $15.2 million.
The company maintains $1.4 million in cash on hand.
Anthony Mirhaydari is founder of the Edge and Edge Pro investment advisory newsletters. A two-week and four-week free trial offer has been extended to InvestorPlace readers.
