Best Stocks to Buy Under Trump: Sturm, Ruger (RGR)
The Second Amendment and gun owners’ rights have been a hot-button issue lately. But the sad reality is that mass shootings at schools and shopping malls haven’t stopped gun sales and won’t in 2017, either.
A pending Supreme Court nomination and a GOP-controlled Congress all but ensures a lack of gun control measures and easier regulations on the sale of firearms in the next few years. Gun manufacturers are in line to benefit as a result, and Sturm Ruger & Company Inc (NYSE:RGR) is perhaps your best opportunity to play this trend.
RGR stock fell off a cliff in November after the election of President Trump. Many investors saw Sturm Ruger reported “stronger than normal” sales in the summer during the run-up to the vote and figured that all the demand had been sated. However, anyone who has tried to bet on a peak in gun sales has been proven quite wrong many times in recent years.
Furthermore, shares have already rebounded 10% from their November lows, showing that the brief bottom is behind RGR and that share should move higher and not lower in the short-term.
If you have considered gun stocks a no-brainer trade but been afraid to chase them as shares ran up sharply across early 2016, now is your chance to buy in on the dip.