Alliant Techsystems Inc. (ATK), Olin Corporation (OLN): Pistol-Packin’ Mamas and Profits

It’s trading near its 52-week high of $93.86 before it reports on Aug. 1, having run up 98% this last year. It offers a smaller yield at 1.10% but at a reasonable 12% payout ratio. This name isn’t quite as compelling at this level with its 6.33 PEG, although the trailing P/E is only 11.02. With government spending so uncertain, it’s not a name to go all in.

Lastly, small cap Sturm, Ruger & Company (NYSE:RGR) is reporting on July 31 and is a 4% yielder with a 12.30 trailing P/E. With great numbers already out from Cabela’s, especially from its firearms and shooting departments, Sturm, Ruger should again find beating expectations as easy as…er, shooting fish in a barrel. Of interest, Ruger has a close relationship with Cabela’s, offering its Cabela’s Club members special events at its Ruger Gunsite Academy. The company also sells pepper spray products and offers advice on self-protection aimed at women in a series of videos titled Don’t Be A Victim.

It’s worth mentioning that Sturm, Ruger & Company (NYSE:RGR) had rocketed much higher over the last few years, but pulled back almost 20% after the tragic Newtown shootings and is now only up 1.23% over the last 52 weeks. It seems unfairly oversold with its 22.65% revenue growth over the last three years even before the company shot out the lights with its last earnings release, growing EPS by 52% and revenue by 39%. The company has no debt, the return on equity is 60.34%, and the operating margin is 22.99%.

This would be a practically perfect stock if it weren’t so vulnerable to headline risk. Nonetheless, the beta is only 1.06. And there is the teeny matter of a huge short interest at 25.80%.

The Foolish takedown

Self-protection for men and women is more of an issue every day and these three companies make it possible and profitable. Of the three, Olin Corporation (NYSE:OLN) is one that is not as volatile with that chemicals revenue stream and yield. Next, I like Sturm, Ruger & Company (NYSE:RGR) and think that it is oversold. Alliant Techsystems Inc. (NYSE:ATK) is just too dependent on government defense contracts, but its latest acquisition of Caliber Co is a positive.

The article Pistol-Packin’ Mamas and Profits originally appeared on Fool.com.

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