This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

5 Big Surprise Stock Winners of 2011

The company has made several small strategic acquisitions this year to help boost its future business. Insider buying has also helped to move the stock in the second half of 2011. What really helped the stock to climb was a series of announcements in early November when the company initiated a 5 million-share repurchase program in conjunction with its third-quarter earnings report.

Sturm Ruger: +118%

Sturm Ruger (RGR), which I highlighted in September as one of 7 Top Stocks That Should Continue to Outperform -- manufactures guns and ammunition. This was a hot sector during 2008 and 2009 when people were buying guns during the recession and in fear that an Obama presidency would ban the sale of handguns. Of course, none of that became reality. Nevertheless, 2009 was a banner year for the company, but 2010 was flat.

Surprisingly, 2011 was another record year for Sturm Ruger, and 2012 is expected to be better. The company's operational strength even caught the analysts off-guard as year-to-date earnings of $1.55 beat consensus estimates by 33 cents. I hate to use this word, but the only way to describe Sturm Ruger's success was as a result of "execution."

Sturm Ruger is one of TheStreet Ratings' Top-Rated Recreation Stocks and was featured last month in " 5 Sin Stocks That Could Pop on a Short Squeeze."

Domino's Pizza: +114%

Domino's Pizza (DPZ) is one stock that I was able to take advantage of in the second half of the year. In July, I was looking for stocks that would benefit from the end of the NFL lockout. Domino's had just reported its second-quarter results of 40 cents, which beat consensus analysts' estimates of 36 cents and were 21% greater than the prior year's quarter. Revenue of $384.9 million outpaced analysts' expectations by $8.1 million and grew 6.2% year over year. (Please note that the revenue growth may appear low due to an accounting allusion as one must consider that 26 units were sold to franchisees during the period, thus converting sales to franchise fees and distorting revenue growth in the process.) Domestic same-store sales rose 4.8%, and international same-store sales rose 7.4%. Finally, operating margins rose 100 basis points to 28.8%.

Domino's Pizza was also successfully reducing its debt for several quarters. My price target on the stock was set at $33, as I outlined in my newsletter The LakeView Restaurant & Food Chain Report. The company continued to perform above expectations throughout the summer, finally made an all-time high in the fall and then peaked in early December at $35.30. I sold my shares at $34.75.

Domino's shows up on a recent list of Cramer's 7 Stocks for Your Buy List.

2 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,244.17 +87.32 0.51%
S&P 500 2,007.99 +6.42 0.32%
NASDAQ 4,582.7670 +20.5780 0.45%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs