What Happened?

Shares of american firearm manufacturing company Ruger (NYSE: RGR) fell 12.8% in the morning session after its third-quarter financial results showed a significant miss on profit expectations, even as revenue slightly beat Wall Street's estimates. 

The company reported adjusted earnings per share of $0.11, which was 69% below analyst forecasts and a steep decline from the $0.28 per share earned in the same period a year ago. While net sales grew 3.7% year-over-year to $126.8 million, this positive was overshadowed by a sharp drop in profitability. Ruger’s operating margin swung from a positive 3.1% in the prior year's quarter to a negative 2.7%, indicating that the company's expenses grew much faster than its sales. The steep earnings miss and deteriorating margins appeared to be the primary drivers of the negative investor reaction.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Ruger? Access our full analysis report here.

What Is The Market Telling Us

Ruger’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. Moves this big are rare for Ruger and indicate this news significantly impacted the market’s perception of the business.

The biggest move we wrote about over the last year was 6 months ago when the stock dropped 12% on the news that the company reported weak first quarter 2025 results which included a significant revenue miss and EBITDA falling short of Wall Street's estimates. Overall, this quarter could have been better.

Ruger is up 5% since the beginning of the year, but at $36.60 per share, it is still trading 22.3% below its 52-week high of $47.13 from October 2025. Investors who bought $1,000 worth of Ruger’s shares 5 years ago would now be looking at an investment worth $532.60.

The biggest winners—Microsoft, Alphabet, Coca-Cola, Monster Beverage—were all riding powerful megatrends before Wall Street caught on. We’ve just identified an under-the-radar profitable growth stock positioned at the center of the AI boom. Get it FREE here before the crowd discovers it. GO HERE NOW.