There are only two major gunandfirearms manufacturers in the United States, one of which isSturmR uger & Co. Inc. (RGR), which trades on the New York Stock Exchange. This Connecticut based company has been manufacturing rif lesshotgunspistolsan drevolvers since 1948. Some of the positives on this stock:
* Although the trailing P/E is 140, the forward P/E is 29.
* The stock has a reasonable Price/Sales ratio of 1.45
* Quarterly revenue growth year over year is 18.6%
* The company is has no long term debt
* Last month, the company announced a buyback of $20 million of its shares
* The company anticipates cutting its payroll by about $3 million this year from its buyouts of approximately 150 employees
The other American gunmanufacturer that you can takeashot at is the NASDAQ traded Smith& WessonH olding Corp. (SWHC), a famous name infirearms which has been around since 1856. The company was founded by Horace Smith and Daniel B. Wesson, after selling out their first company, Volcanic RepeatingArms Company, to Oliver Winchester. The company manufactures and sells revolverspistolsrifleshand cuffs, and clothing, and also ownslawenforcement training facilities. A few of the positives on this stock:
* Although the trailing P/E is 44, the forward P/E is 21.
* Quarterly revenue growth year over year is 42.7%
* Quarterly earnings growth year over year is 312%
* The company recently purchased the Thompson/Center Arms company, which will give it expansion into the huntingrifle and black powdermarkets
* The stock has a Price Earnings Growth Ratio of .72
Author owns RGR.
I don't think the gun companies are that great - I could be wrong - naturally - but they just don't have the constituency Smith and Wesson look toppy and Ruger is all over the place but also looking like the run is done for a bit.
ReplyDeleteI own Smith and Wesson and Ruger (not the stocks) also a little Remington and a big honking Winchester.