Firearm Stocks Soar Over Fears Of New Gun-Control Laws

Shares of gun and ammunition companies jumped Wednesday over speculation of new gun control laws in the wake of Tuesday's horrific mass shooting that killed at least 19 children and two teachers at a Texas elementary school. Investors anticipate increased sales ahead of calls for stricter gun laws by Democrats.

As of Wednesday afternoon, Smith & Wesson Inc. and Vista Outdoors Inc. were both up around 10%, American Outdoor Brands Inc. +6.5%, Sturm Ruger & Co. +5.5%, and Ammo Inc. +5%. 

Gun makers' shares typically rise when Democrats call for stricter gun control measures after mass shootings because people buy on the fear that more rules could make owning a gun harder or costlier. This was the case in 2012 when gun sales soared after the shooting in Newtown, Connecticut, at Sandy Hook school. 

Search trends for "buy a gun" immediately erupted Tuesday evening after the shooting at the elementary school in Uvalde, Texas.