Sturm, Ruger & Company (NYSE:RGR) — This manufacturer of firearms for domestic customers has a current dividend yield of 2.4% and steady earnings. The company attributes its success to an increase in the number of states with statutes allowing a “license to carry.” Additionally, demand has been driven by rumors that the federal government will take action to restrain gun ownership and restrict ammunition, which caused a rush to buy earlier this year.
But profit-taking in the stock was triggered when the government began talks with the UN about a global arms restriction. These talks have apparently been terminated, and the company is on pace to beat its own record of producing over 1 million firearms in one year. Earnings strength, better-than-expected sales, and fundamental evaluation make this stock an excellent value.
Technically RGR fell to just below its 200-day moving average in March, but since then, has been supported by the 50-day and 200-day moving averages. The stochastic issued a buy signal several days ago. The trading target for RGR is $55.