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Tractor Supply (TSCO) Stock Sinks As Market Gains: What You Should Know

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Tractor Supply (TSCO - Free Report) closed the most recent trading day at $140.77, moving -0.97% from the previous trading session. This change lagged the S&P 500's 0.29% gain on the day. At the same time, the Dow lost 0.24%, and the tech-heavy Nasdaq gained 0.28%.

Heading into today, shares of the retailer for farmers and ranchers had gained 13.14% over the past month, outpacing the Retail-Wholesale sector's gain of 8.18% and the S&P 500's gain of 2.96% in that time.

TSCO will be looking to display strength as it nears its next earnings release, which is expected to be July 23, 2020. The company is expected to report EPS of $2.59, up 43.89% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.99 billion, up 27.13% from the year-ago period.

TSCO's full-year Zacks Consensus Estimates are calling for earnings of $5.59 per share and revenue of $9.49 billion. These results would represent year-over-year changes of +19.44% and +13.57%, respectively.

Any recent changes to analyst estimates for TSCO should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.32% higher. TSCO is currently a Zacks Rank #2 (Buy).

Looking at its valuation, TSCO is holding a Forward P/E ratio of 25.42. This represents a premium compared to its industry's average Forward P/E of 16.55.

We can also see that TSCO currently has a PEG ratio of 2.07. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TSCO's industry had an average PEG ratio of 3.76 as of yesterday's close.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 173, putting it in the bottom 32% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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