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

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Tractor Supply (TSCO - Free Report) closed at $148.83 in the latest trading session, marking a +1.31% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.22%. Meanwhile, the Dow lost 0.78%, and the Nasdaq, a tech-heavy index, added 0.68%.

Heading into today, shares of the retailer for farmers and ranchers had gained 2.43% over the past month, lagging the Retail-Wholesale sector's gain of 12.26% and the S&P 500's gain of 9.15% in that time.

Investors will be hoping for strength from TSCO as it approaches its next earnings release. The company is expected to report EPS of $1.33, up 27.88% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.39 billion, up 20.26% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.29 per share and revenue of $9.97 billion. These totals would mark changes of +34.4% and +19.42%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for TSCO. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.78% higher. TSCO is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, TSCO is currently trading at a Forward P/E ratio of 23.35. For comparison, its industry has an average Forward P/E of 13.65, which means TSCO is trading at a premium to the group.

It is also worth noting that TSCO currently has a PEG ratio of 1.83. 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 3.56 as of yesterday's close.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 38% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

To follow TSCO in the coming trading sessions, be sure to utilize Zacks.com.


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