3 Stocks Seeing Boosted Demand Amid U.S. Demonstrations

 | Jun 03, 2020 03:09

The global markets have so far looked past demonstrations across the U.S. in response to the tragic killing of George Floyd in Minneapolis while in police custody on May 25th. The nationwide protests, though often peaceful, against police brutality and racism in cities such as New York, Chicago, Atlanta, Los Angeles and Miami have also, on occasion turned chaotic, leading to Jonathan Matuszewsk .

The company missed estimates for quarterly earnings when it reported results on May 19, due to rising coronavirus-related costs, however, it did post better-than-expected revenue figures. U.S. comparable-store sales for the first quarter jumped 7.5%, a stark contrast from the dismal sales results offered by many other retailers.

3. Sturm Ruger & Company

Sturm Ruger & Company (NYSE:RGR) is engaged in the design, manufacturing, and sale of firearms, such as rifles, pistols, and revolvers. The Southport, Connecticut-based company is currently America's largest firearm manufacturer, according to recent data from the Bureau of Alcohol, Tobacco, Firearms and Explosives.

Shares have jumped 17.5% since last Friday, continuing this year’s rally which was first spurred by the initial panic surrounding the coronavirus pandemic

In the latest earnings release, CEO Christopher Killoy stated:

“Anecdotal evidence suggests that this increased demand may likely be related to Covid-19, the impact of state-level restrictions and heightened concern for personal protection."

Year-to-date, the stock has gained around 51% in 2020, significantly outperforming the S&P 500’s 4.6% drop in the same period. Data released by the Federal Bureau of Investigation showed the number of background checks for gun sales in April increased 25% year-over-year to more than 2.9 million, the record for a single month since 1998.

Storm Ruger shares ended at $71.17 last night, their best level since March 2016, giving the company a valuation of $1.2 billion.

Sturm Ruger & Company Weekly Chart

The firearms maker announced that earnings topped consensus estimates on May 6. Revenue for the first quarter rose 8% from the year-ago period to $123.6 million.

Other notable names in this space that could generate some interest include American Outdoor Brands (NASDAQ:AOBC), formerly known as Smith & Wesson Brands, and ammunition maker Vista Outdoor (NYSE:VSTO).

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