GUN STOCKS RETREAT AS FEARED POST-POLL UNREST FIZZLES OUT
Shares of firearms sellers tumbled on Monday as promising data from a COVID-19 vaccine trial knocked stay-at-home stocks, and as civil unrest failed to materialize after Democrat Joe Biden emerged as the winner of last week’s presidential election, Noel Randewich reported for Reuters.
Smith & Wesson Brands and rival Sturm Ruger & Co. fell more than 9%, while Vista Outdoor, which sells ammunition and a range of sporting goods, fell over 12%.
They were among several so-called stay-at-home stocks dropping after Pfizer said its experimental vaccine was more than 90% effective in preventing COVID-19. Sales of sporting goods, including hunting gear, have increased this year as consumers spend more time outdoors due to the coronavirus pandemic.
“If a vaccine that is 90% effective can truly bring COVID to an end, the return to work and school could subsequently bring sales in these categories back down to normalized levels,” Aegis Capital analyst Rommel Dionisio said in an email. Two other big winners this year from consumers spending more time at home - Peloton Interactive and Zoom Video Communications - both fell more than 14%, while airlines and other companies that would benefit from an end to the health crisis rallied.