Winning AOBC Stock Forecast: American Outdoor Brands Corporation Aiming High And Reaching Their Target

Winning AOBC Stock Forecast

(Source: Flickr)

American Outdoor Brands Corporation (AOBC) has seen a large surge of success over the past couple of weeks. After seeing a 84% decline in their net income in 2018, coming down to $20 million. Firearm sales which are the core of the brand (AOBC also being known as the iconic arms brand Smith & Wesson), were down 41.9%. The decline in gun sales began with a push for tighter gun control laws in America, and took a steeper drop around election time. However, sales are once again looking to be on a healthy incline. It should be noted that the company also expanded out of strictly arms and into the outdoors business, in hopes to “offer a broad range of product offerings” to its customers. AOBC recently released their Quarterly net sales, coming in at $138 million, a 7.6% increase from last quarter. The CEO and President attributes the company’s recent success to cutting expenses, reduced promotions and catering more to what the customers are asking for. The outdoors sect made for 25% of the quarterly revenue, and a newly released firearms made for 28.5%. The most popular among them being the M&P Shield 380 EZ pistol. The unexpected rise caused shares to increase 40%. AOBC is now forecasting earnings per share of $0.62-$0.66 on revenues of $630 million as opposed to expected earnings of $0.49 and revenues of $596 million.

(Source: Yahoo Finance)

I Know First’s bullish AOBC forecast was the best among the other stocks in the set below and proved to be correct . On August 31st, 2018, the algorithm gave a forecast with a signal of 5.99 and predictability of .21 over a 7 day horizon. In accordance with the algorithm, the stock had a return of 50.36% while the S&P 500 had a return of -1.02% during the same period.

Current I Know First subscribers received this bullish AOBC forecast on August 31st.

Algorithmic traders utilize these daily forecasts by the I Know First market prediction system as a tool to enhance portfolio performance, verify their own analysis and act on market opportunities faster. This forecast was sent to current I Know First subscribers.

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American Outdoor Brands Corporation (NASDAQ: AOBC) designs, manufactures, and sells firearms worldwide. The company’s Firearms segment offers handguns, long guns, handcuffs, suppressors, and other firearm-related products under the Smith & Wesson, M&P, Performance Center, Gemtech, and Thompson/Center Arms brands. It also sells parts purchased through third parties; operates a private law enforcement training facility; and provides manufacturing services to other businesses under the Smith & Wesson and Smith & Wesson Precision Components brands. This segment sells its products to gun enthusiasts, collectors, hunters, sportsmen, competitive shooters, individuals desiring home and personal protection, law enforcement and security agencies and officers, and military agencies. The company’s Outdoor Products & Accessories segment offers reloading, gunsmithing, and gun cleaning supplies; stainless steel cutting tools and accessories; flashlights, tree saws, and related trimming accessories; shooting supplies, rests, and other related accessories; apparel; vault accessories; laser grips and laser sights; and a range of products for survival and emergency preparedness, as well as field rests, knives, gun vises, hearing protection products, camping and survival gears, and case tumblers. It provides its products under the Caldwell, Wheeler, Tipton, Frankford Arsenal, Smith & Wesson, M&P, Thompson/Center, Lockdown, Hooyman, BOG-POD, Golden Rod, Non-Typical, Crimson Trace, Imperial, Schrade, Old Timer, Bubba Blade, UST, and KeyGear brands. The company markets its products through dealers, retailers, in-store retail channels, and range operations; social and electronic media; in-store retail merchandising systems and strategies; and Websites and online retail stores. The company was formerly known as Smith & Wesson Holding Corporation and changed its name to American Outdoor Brands Corporation in January 2017. The company was founded in 1852 and is based in Springfield, Massachusetts.