Plum Creek Timber Co. Inc. (PCL), Arctic Cat Inc (ACAT), Sturm, Ruger & Company (RGR): A-Hunting We Will Go for Yield

When this company opens a new store, the event draws thousands and its most recent shareholder meeting has become quite the sensation, too, drawing record attendance.

The stock has been on a tear since 2011 on fears that an Obama re-election would promote action on gun legislation. Since the re-election, gun stocks as well as Cabelas Inc (NYSE:CAB)’s have risen with Cabelas Inc (NYSE:CAB)’s up 84.25% over 52 weeks. It isn’t trading at the low P/Es of yore but the forward P/E is only 16.68 with a PEG of 1.12. Even with this astonishing share price appreciation, insiders are still buying, like Board member Reuben Mark who bought 5,000 shares less than a month ago at an average price of $67.65.

The company has some strategic initiatives including its Outpost stores which are half the size of the flagship destination stores. Their Outpost stores make $550 per square foot compared to the huge legacy stores, and are easier to put up as the company expands to more than its 225 stores in the U.S. and Canada. CEO Milner said they will open 10-12 new stores per year.

The company also does a brisk catalog and internet business as well with its private brands with their significantly higher margins.

Off road hi-jinks

Finally, there’s Arctic Cat Inc (NASDAQ:ACAT), the snowmobile and ATV maker, which, at a market cap of $603 million, is much smaller than its main competitor, Polaris Industries Inc. (NYSE:PII). Arctic Cat Inc (NASDAQ:ACAT) has half the yield at 0.90% of Polaris’ 1.80%, but its growth outlook is brighter. It looks undervalued here with a PEG of 0.44 and a trailing P/E of 15.82 and a forward P/E of 12.66.

Its Board reinstated the quarterly cash divided on May 15 and announced a share repurchase worth $30 million. This double vote of confidence should hearten investors on the fence about a lightly covered small cap name.

Its snowmobiles in the winter and ATVs the rest of the year are a popular part of the outdoor sportsman lifestyle. Analysts give the name a five year 20% EPS growth rate compared to a 16.67% rate for rival Polaris.

Trophy time

Which of these you put in your portfolio with pride of place depends on what you’re trying to bag: elusive small cap grower like Arctic Cat Inc (NASDAQ:ACAT), lumbering (pun intended) big cap REIT that is Plum Creek Timber Co. Inc. (NYSE:PCL), nimble but dangerous Sturm, Ruger & Company (NYSE:RGR) with its high short interest, or ever more popular trophy, Cabelas Inc (NYSE:CAB)’s, with its loyal customers. Just be careful out there, buy on dips, and don’t shoot your eye out.

The article A-Hunting We Will Go for Yield originally appeared on Fool.com and is written by AnnaLisa Kraft.

AnnaLisa Kraft has no position in any stocks mentioned. The Motley Fool owns shares of Arctic Cat and Sturm, Ruger & Company. AnnaLisa is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!