#2 - Sturm Ruger (NYSE:RGR)
Like many consumer products, you get what you pay for in the firearms industry. That brings us to Sturm Ruger (NYSE:RGR). Sturm Ruger’s products are known for their reliability and craftsmanship, but that also means that they are among the most expensive in the industry. If this were a typical election year, that factor might make Sturm Ruger less attractive.
But with the coronavirus sparking panic selling, it seems clear that there will be a market for Sturm Ruger products. In March, when the uncertainty surrounding the coronavirus was at its apex, Sturm Ruger and other firearms manufacturers saw sales increase.
Like many gun stocks, RGR stock does not draw much attention from analysts. Firearms manufacturers have fallen out of favor with many investors. Still, the stock is up nearly 15% for the year. And the one analyst that has offered a rating gave the stock a buy with a price target that suggests the stock still has some room to run. As of this writing, RGR stock is comfortably above both its 50- and 200-day moving average.
And while it’s fair to say that sales should decrease as firearms stores are labeled as non-essential businesses, there is sure to be pent-up demand as the American economy begins to slowly reopen.
About Sturm, Ruger & Company, Inc.
Sturm, Ruger & Company, Inc, together with its subsidiaries, designs, manufactures, and sells firearms under the Ruger name and trademark in the United States. The company operates through two segments: Firearms and Castings. It provides single-shot, autoloading, bolt-action, and modern sporting rifles; rimfire and centerfire autoloading pistols; single-action and double-action revolvers; and firearms accessories and replacement parts, as well as manufactures lever-action rifles under the Marlin name and trademark.
Read More - Current Price
- $37.42
- Consensus Rating
- Strong Buy
- Ratings Breakdown
- 1 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- N/A
