Trade-Ideas LLC identified Sturm Ruger ( RGR) as a strong 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 $7.5 million.
  • RGR has traded 56,673 shares today.
  • RGR is trading at 5.96 times the normal volume for the stock at this time of day.
  • RGR is trading at a new high 5.06% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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. The stock currently has a dividend yield of 2.1%. RGR has a PE ratio of 33. Currently there are 2 analysts that rate Sturm Ruger a buy, 1 analyst rates it a sell, and none rate it a hold.

The average volume for Sturm Ruger has been 170,000 shares per day over the past 30 days. Sturm Ruger has a market cap of $990.4 million and is part of the industrial goods sector and aerospace/defense industry. The stock has a beta of 0.33 and a short float of 9.8% with 10.17 days to cover. Shares are up 56.9% 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 hold. 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 and increase in net income. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 1.7%. Since the same quarter one year prior, revenues rose by 22.9%. 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 1.61, which demonstrates the ability of the company to cover short-term liquidity needs.
  • STURM RUGER & CO INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, STURM RUGER & CO INC reported lower earnings of $1.91 versus $5.60 in the prior year. This year, the market expects an improvement in earnings ($2.92 versus $1.91).
  • Powered by its strong earnings growth of 82.35% and other important driving factors, this stock has surged by 41.90% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Leisure Equipment & Products industry and the overall market on the basis of return on equity, STURM RUGER & CO INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.

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