Why Sturm, Ruger Will Rebound in 2013


Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, firearm specialist Sturm, Ruger has earned a respected four-star ranking.

With that in mind, let's take a closer look at Sturm, Ruger and see what CAPS investors are saying about the stock right now.

Sturm Ruger facts

Headquarters (Founded)

Southport, Conn. (1948)

Market Cap

$907.0 million


Leisure products

Trailing-12-Month Revenue

$443.3 million


CEO Michael Fifer (since 2006)
CFO Thomas Dineen (since 2003)

Return on Equity (Average, Past 3 Years)


Cash / Debt

$105.1 million / $0

Dividend Yield



Browning Arms
Remington Arms
Smith & Wesson

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 94% of the 635 members who have rated Sturm Ruger believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, neocolonialist, succinctly summed up the Sturm, Ruger bull case for our community:

Beginning 2013 looks good for this stock with pre-tax margin (TTM) > 20, no LT debt, 5 yr EPS growth rate > 40%, P/E ~16, gun sales were good before talk of govt control measures, now they are astounding. Obviously well run company that makes a really good weapon. ... I think the fears from govt. gun control are overblown. This stock got beat up hard end of last year, and even worse after the [Connecticut] killings. This stock still has a lot of bounce back room, plus a lot of growth room. Gun sales in the U.S. have been steadily growing, and reaching new demographics.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Sturm, Ruger may not be your top choice.

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The article Why Sturm, Ruger Will Rebound in 2013 originally appeared on Fool.com.

Brian Pacampara has no position in any stocks mentioned. The Motley Fool owns shares of Sturm, Ruger. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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