Trade-Ideas LLC identified

Sturm Ruger

(

RGR

) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Sturm Ruger as such a stock due to the following factors:

  • RGR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $24.4 million.
  • RGR has traded 172,116 shares today.
  • RGR is trading at 12.59 times the normal volume for the stock at this time of day.
  • RGR is trading at a new low 8.03% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on RGR:

Sturm, Ruger & Company, Inc. designs, manufactures, and sells firearms under the Ruger trademark in the United States. It operates in two segments, Firearms and Castings. The stock currently has a dividend yield of 1.9%. RGR has a PE ratio of 21. Currently there are 2 analysts that rate Sturm Ruger a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Sturm Ruger has been 360,400 shares per day over the past 30 days. Sturm Ruger has a market cap of $1.3 billion and is part of the industrial goods sector and aerospace/defense industry. The stock has a beta of 0.03 and a short float of 9.6% with 4.16 days to cover. Shares are up 20.1% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Sturm Ruger as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 4.9%. Since the same quarter one year prior, revenues rose by 24.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • RGR has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, RGR has a quick ratio of 1.72, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Powered by its strong earnings growth of 214.28% and other important driving factors, this stock has surged by 37.77% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, RGR should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • STURM RUGER & CO INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, STURM RUGER & CO INC increased its bottom line by earning $3.22 versus $1.91 in the prior year. This year, the market expects an improvement in earnings ($3.98 versus $3.22).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Leisure Equipment & Products industry. The net income increased by 215.9% when compared to the same quarter one year prior, rising from -$14.76 million to $17.10 million.

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