Locked and Loaded for More Gains

Over the last month, Smith & Wesson (SWHC) has been a strong performer: The shares have gained more than 9%, compared with a 3.3% gain for the S&P 500 over the same period. That stock's performance has not been universal for the firearms group, given the comparatively flat action at Sturm Ruger (RGR), Smith & Wesson's best publicly traded peer. Now, to be fair to Sturm Ruger and its shareholders, the stock is still up significantly after the recent pullback, having reaped a return of more than 58% year to date.

One of the issues with Sturm Ruger, in fact, is the very fact that the stock has had such a strong run, as the move has left it trading at 17x 2014 consensus earnings estimates of $4.19 per share. By comparison, Smith & Wesson shares are trading at 9.2x next year's earnings target....378 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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