Shares of Smith & Wesson (SWHC) continued to soar on Tuesday despite President Obama's impassioned -- and at times emotional -- call to reduce gun violence in the U.S.
The president's plan includes provisions to overhaul the background check system to improve its effectiveness, employ more ATF agents to enforce gun laws, increase spending for mental-health care and improve gun safety technology.
Obama referred to his plan as "common-sense executive actions" and added, "If a child can't open a bottle of aspirin, we should make sure they can't pull a trigger on a gun."
Smith & Wesson's stock was undeterred by Obama's remarks and the stock's rally briefly accelerated just as the president took the podium before noon. Shares of the Massachusetts-based firearms manufacturer where up 12% as of late day trading.
Earlier on Tuesday, on CNBC's "Squawk on the Street," Jim Cramer characterized the rally that follows any suggestion of gun legislation as "investing in irony" as people fear that there will be fewer opportunities to purchase a gun.
"The scarcity of gun plays coupled with the knee-jerk panic of gun buying whenever we get a reaction to a horrendous shooting drives the sales here," Cramer told Real Money. "That's why I am paying such close attention to Colt. It is why I think that these stocks deserve a premium multiple on future estimates, which would put SWHC at $30."
On Monday, Real Money's James Passeri looked at what could be next for Colt Defense as it comes out of bankruptcy protection.
While Smith & Wesson's recent rally has been widely reported, the stock has been doing well on a five-year basis. Its performance has even eclipsed FANG stocks, Jon Najarian of optionmonster.com said in an email to Real Money.
On a five-year basis Smith & Wesson is up nearly sevenfold. Meanwhile, over the same five-year period, Amazon's (AMZN) stock has increased nearly four times, Netflix's (NFLX) stock has increased just over four times, and Alphabet's (GOOG, GOOGL) stock has more than doubled. Facebook's (FB) stock, which has only been trading publicly since 2012, has more than doubled since its IPO.
"The president is, as I have said repeatedly, the best thing ever to happen to Smith & Wesson, Sturm Ruger (RGR) and other gun related stocks," Najarian said.