Sirius XM Radio Inc (SIRI), Sturm, Ruger & Company (RGR) & Three Predictions for Next Week

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3. Sturm, Ruger will beat Wall Street’s earnings estimates
Some stocks are just flat-out better than others.

Sturm, Ruger & Company (NYSE:RGR) is a leading maker of firearms. Let’s nip any controversy in the bud. No matter where you stand on the gun control debate, you can probably appreciate why a climate that may grow more restrictive in the future will trigger — pun intended — a spike in gun sales. Sturm, Ruger & Company (NYSE:RGR) is positioned well to cash in on the run for weaponry.

Another thing it does is make analysts look like perpetual underachievers. If analysts say that the company posted a profit of $1.01 a share in its latest quarter, I’ll whip out a “greater than” sign. History’s on my side!

One of my best tricks to beating the market is finding stocks that perpetually land ahead of the prognosticators. Let’s go over the past year of earnings reports.

Quarter EPS Estimate EPS Surprise
Q1 2012 $0.68 $0.79 16%
Q2 2012 $0.80 $0.91 14%
Q3 2012 $0.80 $0.88 10%
Q4 2012 $0.82 $1.02 24%

Source: Thomson Reuters.

Things can change, of course. Consumers can shy away from firearms, opting for other protective alternatives. We can get to the point where there’s a glut of guns on the market, and someone may resort to buying a used handgun to get more bang — again, pun intended — for the buck.

However, none of that seems to be a factor in the near term. Everything seems to be falling into place for another market-thumping quarter on the bottom line.

The article 3 Predictions for Next Week originally appeared on Fool.com and is written by Rick Munarriz.

Longtime Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends Apple and Lumber Liquidators and owns shares of Apple, Lumber Liquidators, and Sturm, Ruger.

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