Smith & Wesson and Lennar Have a Lot in Common

Smith & Wesson and Lennar have a lot more in common than you may think.

The firearms maker and homebuilder may toil away in completely different industries, but both companies are slated to report fresh quarterly results tomorrow.

The similarities don't end there.

Both companies are expected to post healthy top-line growth tomorrow.

For Smith & Wesson, betting on strong results is a pretty safe wager. The gun maker issued preliminary results two weeks ago. Net sales soared 38% to $179 million, and earnings of $0.44 a share were well ahead of the $0.27 a share it earned from continuing operations a year earlier.

Lennar hasn't provided an early glimpse of its early financials, but analysts see revenue skyrocketing 43% to top $1.3 billion.

Stellar growth at both companies isn't really a surprise, but that brings us to the biggest thing that Smith & Wesson and Lennar have in common: Both companies are witnessing a surge in demand because buyers don't think that they will be able to buy their wares tomorrow.

Smith & Wesson has experienced a run on guns as prospective buyers load up on firearms ahead of any legislation that may limit the purchase of new weaponry. Any minute now, the rules may be changed.

It really isn't all that different in Lennar's world. Potential homebuyers have been striking new home deals before the clock runs out on low mortgage rates. That clock is already ticking, as mortgage rates have inched up to their highest levels in more than a year. Locking into a new home now could be just as important as locking into a new pistol or revolver now.

Gun ownership restrictions would make it harder to purchase new firearms, but the same can be said about higher mortgage rates forcing prospective homebuyers into cheaper alternatives.

Come tomorrow, investors will cheer the growth at both companies. However, both industries are nervously eyeing their growth prospects in the future.

Yes, Smith & Wesson and Lennar have a lot more in common than you may think.

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The article Smith & Wesson and Lennar Have a Lot in Common originally appeared on Fool.com.

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