#4 - Sturm Ruger (NYSE:RGR)
It generally has a negative effect on a company’s stock when its CEO appears in front of a Congressional committee. That’s the situation with Sturm Ruger (NYSE:RGR). The company’s CEO, Christopher Killoy, appeared in front of the House of Representatives Committee on Oversight and Reform to defend the company and the industry against charges of profiteering off the sales of the company’s AR-15-style rifles.
It’s unclear what will become of gun legislation in the United States. Analysts project a sharp decline in revenue and earnings over the next five years. And even if that doesn’t come to pass, it’s understandable if some investors find investing in a firearms company distasteful. But if you’re open to investing in the company, there are some compelling fundamentals to consider.
First, Sturm Ruger has nearly tripled its gross revenue since 2019. The company is sitting on over $200 million in cash with no debt. And while the payout on the company’s dividend is, charitably, all over the place, the company retains a dividend yield of around 4%.
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
- $37.97
- Consensus Rating
- Strong Buy
- Ratings Breakdown
- 1 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- N/A
