Despite posting a very good first quarter, Smith & Wesson shares did not sho0t upward like many expected. The stock took an initial bounce of 5%, but then came back 5% form that level, as one analyst downgraded it and that weighed on overall sentiment.

Overall, the stock during the last year has increased by 70% and some feel the industry has reached its peak of the most recent cycle. Smith & Wesson is a strong company fundamentally but has an uncertain outlook and the high risk is what has kept the stock trading at its value.

Revenue at S&W increased during its first quarter by 40%, which beat estimates by over $8.83 million. Its non-GAAP EPS was 62 cents per shares in comparison to last year during the same period of 32 cents.

Its strong performance along with earnings from a pair of acquisitions led to its boosting guidance. Management at S&W now is expecting its full year 2016 sales to be between $900 million and $920 million with its earnings per share to be between $2.38 and $2.48.

Analysts expect $778.4 million in sales with per share earnings of $1.94.

The increase in revenue was pushed by more orders from both long guns and handguns in its Firearms division that saw growth of 48%.

The was due to strong demand by consumers that was reflected in the increase in background checks as well as gains in market share, said management at the gun maker.

That reflected as well two acquisitions made by the company during 2015, which have gone smoothly thus far. S&W acquired Taylor Brands and Crimson Trace and the acquisitions will add strength to the market position of the company and lead to more growth opportunities.

Crimson Trace is one of S&W’s key suppliers and a leader in the industry for tactical lighting and laser sighting systems, which, will help lead to cost synergies over the long term through greater input control and backward integration.

Its acquisition of Taylor Brands, a leader in the industry of specialty tools and knives and a licensee that has been long standing of S&W.

The gun industry is watching closely the upcoming national election in the U.S. as the two candidates have used gun control and the second amendment as part of their campaign.