Ruger Lifts Ban on New Gun Orders, But its Stock is Still in the Dumps

Sturm, Ruger & Company (RGR) has recently begun taking new gun orders again, but Forbes reports that it’s stock is still hurting.

As you may recall from many of our articles a few months ago, gun demand in the US have been at all-time highs. While this has translated into big bucks for gun manufacturers, many companies just haven’t been able to keep up with the demand.

Ruger was one such company; they had to stop taking new orders in march because they were one million orders behind. They’ve been pumping out guns ever since, but they’re still behind last year’s backlog. Nonetheless, they lifted the order restriction on May 29.
Sturm Ruger Stock chart
The company’s stocks are still trying to recover. SRC is hoping to attract new value investors with its impressive earnings. With no debt, a one-year ROE of 34.4 percent, an increase in shares of $2.70 to $2.98, and a 33 percent sales hike in the first quarter of 2012 compared to the same quarter last year, now might be a good time to get behind the Ruger brand.

Though, with the presidential election looming in the coming months, some investors may want to see which way the political winds are blowing before they put money into a company that may or may not suffer from new gun control laws. Come November, it’ll be interesting to see whether gun company stocks spike upward or downward.

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