August 1st, 2011

Ruger Stock Has Soared — But Is It Still a Good Investment?

If you’d invested in Ruger stock three years ago, you’d be sitting pretty right now. Sturm, Ruger & Co. (NYSE: RGR) has done exceptionally well since the 2008 Presidential election, despite the faltering economy. Ruger’s stock price is currently trading above $27.00 per share, up from a low of $5.18 per share in November 2008. That’s an increase of more than 500%. And during that period, Ruger also paid a modest dividend. Hard to beat a huge stock value increase with dividends to boot.

Sturm Ruger Stock price

Is Ruger still a good investment, or has all the money already been made? We caution any potential investor that “what goes up must come down”. Still, Ruger has solid fundamentals and the company has made some smart decisions, moving into the concealed, carry gun market with huge success.

Motley Fool Takes Close Look At Sturm, Ruger & Co.
On July 30th, The Motley Fool, a popular investing website, spotlighted Sturm, Ruger & Co., analyzing the company’s performance over the last few years. Motley Fool noted that Ruger has zero debt, has shown 5-year dividend growth of 26.3%, and has delivered a 15% return on equity — all good things. On the other hand, Motley Fool was disappointed with Ruger’s slim 3.7% revenue growth over the past 12 months. But there are positive signs. Last week, Ruger issued a quarterly earning report showing a 32% jump in net income. Overall, The Motley Fool concluded: “Sturm, Ruger hasn’t grown as much as investors would like to see. But with a reasonable valuation, a decent and growing dividend, and good prospects for the future, Sturm, Ruger could get a lot closer to the 10 ring at some point.”

READ FULL STORY: The Motley Fool Analysis of Sturm, Ruger & Co.

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