Why These Defense Stocks Are Gaining This Week

2. Sturm, Ruger & Company, Inc. (NYSE:RGR)

Weekly Gains: 11.82%

Sturm, Ruger & Company, Inc. (NYSE:RGR) is an American firearms company with a diverse portfolio of products, mainly serving three product lines – pistols, rifles, and revolvers.

The stock went up significantly over the last week after the company released financial results for the fourth quarter and full year 2024 on February 19. While profitability declined in 2024 compared to 2023 due to unfavorable deleveraging of fixed costs, Sturm, Ruger & Company, Inc. (NYSE:RGR)’s performance during the fourth quarter was encouraging.

Q4 2024 results were drastically better sequentially, with production increasing 10%, sales up 19%, and profit more than doubling compared to Q3. The results were also better year-over-year. Sturm, Ruger & Company, Inc. (NYSE:RGR) reported quarterly net sales of $145.8 million and diluted EPS of $0.62, improving from net sales of $130.6 million and diluted EPS of $0.58 in Q4 2023.

Investors have also been encouraged by Sturm, Ruger & Company, Inc. (NYSE:RGR)’s balance sheet position, as it enters fiscal 2025 debt-free, with reduced inventories, and a robust pipeline of new products.