The 2020 election has investors tense. And while it’s anyone’s guess as to who could win, we have a good sense that guns stocks could explode higher on a potential Joe Biden win.

That’s because many are concerned he and running mate Kamala Harris could enact legislation to potentially curb the Second Amendment. In fact, Biden has already noted he would ban “assault weapons, ban high capacity magazines and introduce universal background checks in a bid to confront what he called America’s ‘gun violence epidemic,’” as reported by Newsweek contributor David Brennan.

That might also explain why background checks are exploding around the country. According to the FBI, the National Instant Criminal Background Check System (NICS) conducted 14.8 million checks for gun sales this year. In October, firearm background checks soared 60% year-over-year to 1.769 million.

With gun sales only increasing, here are some of the top stocks to consider:

• Smith & Wesson Brands (NASDAQ:SWBI)
• Sturm Ruger & Company (NYSE:RGR)
• Vista Outdoor (NASDAQ:VSTO)
• Olin Corporation (NYSE:OLN)
• Sportsman’s Warehouse (NASDAQ:SPWH)

Gun sales haven’t just shot to highs on Biden concerns, but on fears of lawlessness due to the novel coronavirus pandemic and possible protests.

Gun Stocks To Buy For A Biden Presidency: Smith & Wesson Brands (SWBI)

Since bottoming out at $5.47 in March, SWBI stock has exploded to $17.31. From here, I believe the stock could retest prior highs of $22.33 in the near term.

FY2021 Q1 earnings results were very good. Higher gun sales led the company to report net income of $48.4 million, or 86 cents a share, up from a loss of $2.1 million, or four cents year over year. Meanwhile, sales came in at $277.9 million, up from $ 123.7 million.

Deana McPherson, Executive Vice President and CFO noted:

“Our strong financial performance enabled us to generate operating cash flow of $83.5 million during the quarter, which, combined with our cash on hand, allowed us to pay down $135.0 million on our revolving line of credit and end the quarter with zero net debt.  After the end of the first quarter, as part of the spin-off process, we restructured our credit facility for a new, five-year term that enables us to maintain an unsecured $100 million line of credit for the foreseeable future.”

This is a name brand stock worth putting in your portfolio.

Sturm Ruger & Company (RGR)

Sturm Ruger & Company is another hot stock to consider.

After running from a March low of $35.84 to a high of $82.30, the stock pulled back with the broader market to triple bottom support at $60.15.  As it begins to recover heading into the election, I believe the RGR stock could re-challenge prior highs set in August.

What’s interesting about RGR is that it’s “starting to run out of guns,” as reported by NH Business Review, “thanks to an ‘incredible surge in demand’ in the third quarter, coupled with a Covid-induced caution in hiring,” per the earnings call.

Company gun sales were up more than 50% in the third quarter to $145.7 million. That’s a 53% jump year over year. Net earnings jumped to $24.8 million, or $1.42 a share.

Vista Outdoor (VSTO)

Locked and loaded, Vista Outdoor has had quite a year.

Since bottoming out around $5 in March, it’s now up to $20.66, where it’s consolidating. From here, I believe the stock could refill a 2016 bearish gap around $37. All as the coronavirus, tensions in the streets and the outcome of the election stir more potential chaos.

VSTO could push even higher as the company nears Q2 2021 financial results on November 5.

In its last release, sales came in at $479 million, or four cents a share. Gross profits were $125 million — up 32% year over year. Operating expenses were $77 million — down 23% year over year, as well.

Olin Corporation (OLN)

Ammunition and chemical manufacturer Olin Corporation ran from an August low of about $10 to a current price of $17.30.

With Americans stocking up on guns and ammo, OLN stock could easily break above triple-top resistance and potentially test $23 near-term.

In addition, Olin Corporation just declared a 20-cent dividend, payable December 10 to shareholders of record at close of business November 10. Olin will also release third quarter earnings on November 4.

Sportsman’s Warehouse (SPWH)

Sportsman’s Warehouse has had an explosive year, running from a low of about $5 to a current price of $14.  Currently trading at double-bottom support, I believe the stock could challenge double top resistance around $17, near-term.

In its latest earnings report, Sportsman’s Warehouse CEO Jon Barker said:

“The second quarter was record-breaking for Sportsman’s Warehouse. I am very proud of the Sportsman’s Warehouse team as they worked to keep our associates and customers safe during this sustained surge in our business,” said . “Same store sales were up 61% in the second quarter of 2020 as compared to the same period last year, primarily due to market share gains, a significant increase in participants in outdoor activities, and social unrest.”

On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned in this article. 

Ian Cooper, an InvestorPlace.com contributor, has been analyzing stocks and options for web-based advisories since 1999. As of this writing, Ian Cooper did not hold a position in any of the aforementioned securities.