#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 & Co, Inc engages in the business of designing, manufacturing, and selling firearms to domestic customers. It operates under the Firearms and Castings segments. The Firearms segment focuses on manufacturing and selling rifles, pistols, and revolvers principally to a number of federally licensed, independent wholesale distributors.
More- Current Price
- $39.63
- Consensus Rating
- Strong Buy
- Ratings Breakdown
- 1 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- N/A
