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Is Sturm, Ruger & Company (RGR) a Great Value Stock Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is Sturm, Ruger & Company (RGR - Free Report) . RGR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 12.19, while its industry has an average P/E of 16.73. Over the last 12 months, RGR's Forward P/E has been as high as 16.33 and as low as 8.14, with a median of 12.65.

Investors should also recognize that RGR has a P/B ratio of 3.08. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 6.61. Within the past 52 weeks, RGR's P/B has been as high as 5.30 and as low as 3.07, with a median of 3.89.

Investors could also keep in mind Vista Outdoor (VSTO - Free Report) , an Leisure and Recreation Products stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Additionally, Vista Outdoor has a P/B ratio of 1.90 while its industry's price-to-book ratio sits at 6.61. For VSTO, this valuation metric has been as high as 3.60, as low as 1.73, with a median of 2.66 over the past year.

These are only a few of the key metrics included in Sturm, Ruger & Company and Vista Outdoor strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, RGR and VSTO look like an impressive value stock at the moment.


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Sturm, Ruger & Company, Inc. (RGR) - free report >>

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