One of the most recognizable corporate names in the land of the Second Amendment belongs to a Springfield, Massachusetts outfit that was founded in 1852.

Smith & Wesson Holding Corporation (NASDAQ: SWHC) is one of the world's largest manufacturers of firearms and the parent of Thompson/Center Arms, a maker of hunting rifles. The firm also sells police accessories, gun safety devices and alarm systems for vehicles and the home. It licenses its brand name for association with apparel, watches, sunglasses, and other consumer goods. The Smith & Wesson Academy is America's longest running firearms training facility for law enforcement, military and security professionals.

The company pleased investors last week, when it reported Q4 EPS of $0.12 and revenues of $82.6 million. Analysts had been looking for $0.10 and $72.9 million. Management also guided Q1 EPS to $0.09 ($0.08 consensus), FY08 EPS to $0.62 ($0.60 consensus) and FY08 revenues to $320-$330 million ($321.78M consensus). Subsequently, Northland Securities reiterated its "outperform" rating on the stock and Merriman spoke of a potential valuation of $21-$25. SWHC shares popped on the news and have now begun to define a bullish "pennant" consolidation pattern. Prices frequently exit pennants moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.

Altogether, brokers recommend the issue with one "strong buy," three "buys" and one "hold." Analysts expect a 32% growth rate, through the next year. The SWHC Sales Growth rate (59.15%), EPS Growth rate (40.91%), Return on Assets (7.14%) and Return on Equity (27.66%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 57% of the outstanding shares. Over the past 52 weeks, the stock has traded between $7.15 and $16.84. A stop-loss of $14.30 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.