Global markets have so far looked past demonstrations in the United States in response to the tragic murder of George Floyd in Minneapolis while in custody on May 25. The rural protests, although often peaceful, against police brutality and racism in cities such as New York, Chicago, Atlanta, Los Angeles and Miami have also sometimes become chaotic, leading to property damage, looting, curfew and the deployment of police and National Guard.
Given the unfolding events, here are three companies in particular whose products could see greater demand, at least in the short term:
1. Axon
Axon Enterprise (NASDAQ :), formerly known as Taser International, provides camera systems and video capture software and law enforcement tasers. The Scottsdale, Arizona-based company, with a market cap of nearly $ 5.85 billion, has seen a 34.4% increase since the end of last week.
Shares of the company, which have increased 46.5% annually. year compared to 12% gains over the same time frame reached a record high of $ 99.62 on Tuesday before closing at $ 98.85. The stock saw a similar rise in late 2014 after Michael Brown was fatally shot by the police in Ferguson, Missouri and his family campaigned for police officers to wear body cameras. At the end of 2019, body cameras and related services accounted for nearly a quarter of Axon's total operations.
Axon announced revenues and revenues on May 7 with a sales increase of 27% over the same period a year earlier. In particular, Axon saw a 38% increase in international sales, particularly in the UK, Australia and Canada, and entered two new markets in Asia and South America.
Other security sector stocks that should also be on your radar include Digital Ally (NASDAQ :), which provides body and car law enforcement cameras , as well as Vislink Technologies (NASDAQ 🙂 and Cemtrex (NASDAQ :), both of which make facial recognition and live video products.
2. Home Depot
Home Depot (NYSE 🙂 is the largest home improvement retailer in the United States and supplies building materials , construction products and installation and repair services.
Shares of the Atlanta, Georgia-based company, earning it a market capitalization of $ 271.8 billion. The stock reached a record high of $ 252.71 yesterday.
Home Depot is well positioned to take advantage of the reconstruction efforts for property damage amid demonstrations that could turn violent. The company serves three primary customer groups: do-it-yourselfers, do-it-for-me customers, and professional contractors, who accounted for about 45% of the company's sales as of November 2019, according to Jefferies analyst Jonathan Matuszewsk.
The company reported quarterly results when it reported results on May 19 due to rising costs for the corona virus, but it posted better than expected sales figures. First quarter comparable store sales were up 7.5%, a stark contrast to the bleak sales performance of many other retailers.
3. Sturm Ruger & Company
Sturm Ruger & Company (NYSE 🙂 is engaged in the design, manufacture and sale of firearms, such as rifles, pistols and revolvers. The Southport, Connecticut-based company is currently the largest firearms manufacturer in America, according to recent data from the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Shares have surged 17.5% since last Friday and continue this year's rally was first fueled by the initial panic surrounding the coronavirus pandemic
In the latest earnings release, CEO Christopher said Killoy:
"Anecdotal evidence suggests that this increased demand is likely related to Covid-19, the impact of state-level restrictions and heightened concerns about personal protection."
To date, the stock has increased by approximately 51% in 2020, which is significantly better than the 4.6% decline in the S&P 500 during the same period. Data released by the Federal Bureau of Investigation showed that the number of background checks on arms sales rose 25% year over year in April to over 2.9 million, the record for a single month since 1998.
Storm Ruger shares ended at $ 71.17 last night, their best level since March 2016, earning the company a valuation of $ 1.2 billion.
Sturm Ruger & Company Weekly Chart
Firearms maker announced earnings on May 6 First quarter sales increased 8% compared to the same period last year to $ 123, 6 million.
Other notable names in this space that could spark some interest include American Outdoor Brands (NASDAQ :), formerly known as Smith & Wesson Brands and ammunition maker Vista Outdoor (NYSE :).
