Sturm, Ruger Looks Better Than Gold

Scared investors have been flocking to gold as our economy, political system, and financial system continue in turmoil. It seems that every other commercial these days on TV or radio is a gold commercial. Gold is not the only investment that is currently seeing panic-like buying, however. Sturm, Ruger (NYSE:RGR) has been hitting new highs for the last several years. This guns and ammunition stock has outperformed gold by a wide margin, and it currently is not as crowded and as highly publicized as the gold trade.

Consider the following facts. Sturm, Ruger has outperformed Gold over the last 1 month, 3 months, 6 months, 12 months, 3 years, and 5 years! Here is a screenshot that shows the performance of the stock vs. the S&P 500 over these same time periods:

It is also important to note that Sturm, Ruger was even up in 2008, when the market was down 38.5%.

Now let's compare the performance of gun and ammunition stock Sturm, Ruger with gold:

RGR * Gold

1 month 28.1% * 20.7%

3 months 40.3% * 23.8%

6 months 125.7% * 36.7%

12 months 64.2% * 52.7%

3 yr. avg. 90.2% * 27.5%

5 yr. avg. 34.9% * 22.8%

As you can see, Sturm, Ruger has outperformed gold by a wide margin, and why not? Earnings at RGR have been growing at an average pace of 90% per year over the last five years. No wonder the stock is delivering such astonishing returns.

Ruger is a small-cap company that was established in 1949 and is headquartered in Southport, Connecticut. It is the fourth largest firearms manufacturer in the United States.

I look at hundreds of stock charts on a daily basis. I find that looking at the parts gives me a more complete understanding of the whole. Ruger is one

This article was written by

Bill Gunderson profile picture
Best Stocks Now! is a unique mix of valuation and momentum

Bill Gunderson (@billgunderson) is the CEO and Chief Market Strategist at Gunderson Capital Management in Mt. Pleasant, South Carolina. He is also a professional money manager, former research analyst, author of Best Stocks Now! 2011, and developer of the Best Stocks Now! App ( Bill offers a free 4-week subscription to his weekly Best Stocks Now! Newsletter to all Seeking Alpha readers at Bill hosts a daily stock market radio show that is syndicated nationwide on the Salem Broadcast Network. He has made numerous appearances on the Fox Business Channel, CNBC, and Bloomberg Radio. Bill's articles have been published by Barron's, Forbes, and other financial publications. He can be reached at or by calling (855) 611-BEST.

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