"Its world-famous .357 Magnum was developed specifically for law enforcement agencies, and the Smith & Wesson .38 Special has been adopted as the caliber of choice at one time or another by hundreds of police departments.

"The Supreme Court has recently upheld Second Amendment rights and Smith & Wesson is one of the world's leading suppliers, forging a well-deserved reputation for high-quality precision weapons.

"The company still regularly wins shooting industry awards; it recently received top awards from the Shooting Industry Academy of Excellence including 'Rifle of the Year' and 'Manufacturer of the Year.'

"Also, the Maryland Natural Resources Police recently converted to the Smith & Wesson M&P pistol, citing 'enhanced ergonomics and ambidextrous controls,' as well as the officers' ability to disassemble the firearm without pressing the trigger.

"Last month, Smith & Wesson completed the acquisition of Universal Safety Response, the original creator of the patented GRAB vehicle safety barrier and the fastest growing barrier technology in the world.

"This buyout helps the firm expand its reach beyond firearms and into the broader market for products that provide safety, security and protection.

"Of course, as investors our primary interest is in numbers. And Smith & Wesson hits the target here, too. Quarterly revenue is up 19.8%. Quarterly earnings are up 125%. And Smith & Wesson has been exceeding analysts' estimates all year.

"But there is still plenty of upside ahead. Severe economic downturns generally increase crime. That causes increased demand by both consumers and police departments for high-quality weapons.

"Today, virtually every major law enforcement and military agency in the world uses Smith & Wesson products. And the company has a 150-year history of reliability.

"The Model 10 firearm, for example, is the only handgun in the world that's been in continuous production since it was introduced in 1899. Incidentally, Smith & Wesson also sells camping, fishing and sporting gear and accessories online and through its distributors.

"In short, the outlook remains promising. And a poor economy won't do anything to change that. Expect sales and earnings to jump at least another 25% in the year ahead. The stock should do considerably better."

Steven Halpern's TheStockAdvisors.com offers a free daily overview of the favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.