Salam folks,
Recently I have been doing research on value investment opportunities, as most of my portfolio (like many of you) is in tech stocks. One interesting opportunity I came across is Smith & Wesson (NASDAQ:SWBI). S&W manufactures some of the popular guns in the US. On Zoya, it is flagged as impermissible to invest in since nearly all revenue is from gun sales. However, should gun sales really be considered impermissible?
For additional data points, the business generates 90%+ of its revenue in the US and 94% of its revenue by selling to consumers (mostly through distributors like big box retailers). Only 6% of the revenue is from selling to government authorities (US federal, state, local and other).
Given that 99% of guns sold in the US are used recreationally, should this company actually be permissible to invest in?