Why Sturm, Ruger Will Rebound in 2013

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, firearm specialist Sturm, Ruger (NYSE: RGR  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Sturm, Ruger and see what CAPS investors are saying about the stock right now.

Sturm Ruger facts

Headquarters (Founded)

Southport, Conn. (1948)

Market Cap

$907.0 million

Industry

Leisure products

Trailing-12-Month Revenue

$443.3 million

Management

CEO Michael Fifer (since 2006)
CFO Thomas Dineen (since 2003)

Return on Equity (Average, Past 3 Years)

32.4%

Cash / Debt

$105.1 million / $0

Dividend Yield

3.2%

Competitors

Browning Arms
Remington Arms
Smith & Wesson
(NASDAQ: SWHC  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 94% of the 635 members who have rated Sturm Ruger believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, neocolonialist, succinctly summed up the Sturm, Ruger bull case for our community:

Beginning 2013 looks good for this stock with pre-tax margin (TTM) > 20, no LT debt, 5 yr EPS growth rate > 40%, P/E ~16, gun sales were good before talk of govt control measures, now they are astounding. Obviously well run company that makes a really good weapon. ... I think the fears from govt. gun control are overblown. This stock got beat up hard end of last year, and even worse after the [Connecticut] killings. This stock still has a lot of bounce back room, plus a lot of growth room. Gun sales in the U.S. have been steadily growing, and reaching new demographics.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Sturm, Ruger may not be your top choice.

If that's the case, we've compiled a special free report for investors called "The 3 Dow Stocks Dividend Investors Need," which uncovers a few other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

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