Taser, Digital Ally Moving Higher in Wake of Baltimore Riots

Maryland's governor issued a state of emergency for Baltimore as the city continues to be in the grips of massive protests and riots. Baltimore City Public Schools are canceled, and a citywide curfew of 10 p.m. is in effect. As unrest spreads, two stocks are seeing a benefit: TASER International, Inc. TASR and Digital Ally, Inc. DGLY.

Both stocks were down sharply yesterday. Taser lost 4.4 percent, while Digital Ally shed 4.8 percent. Today is a different day and a different story. Taser looks to be trading 2.6 percent higher in the premarket; Digital Ally has gained 9 percent.

This move comes as headlines and the situation deteriorated overnight from isolated riots to what now seems like a more widespread issue. As these issues continue to boil to the surface, investors are betting that will lead to more sales and profits for the two makers of video devices for law enforcement.

Taser reports earnings on April 30. According to Estimize, analysts are expecting an EPS of $0.10 on revenues of $43.41 million. This compares to revenues in 4Q14 of $46.82 million and $36.2 million a year ago.

Year-to-date, Digital Ally fell 14 percent as of Monday's $13.21 closing price. The company hit a 52-week high of $33.59 in early September 2014. Taser has gained 7.1 percent this year and more than 60 percent in the past 52 weeks. The stock appears to be pressuring its 52-week high ($30.47) heading into Thursday's earnings.