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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 at $142.05 in the latest trading session, marking a -0.9% move from the prior day. This move lagged the S&P 500's daily gain of 0.53%. At the same time, the Dow added 0.13%, and the tech-heavy Nasdaq gained 1.42%.

Prior to today's trading, shares of the retailer for farmers and ranchers had lost 4.18% over the past month. This has lagged the Retail-Wholesale sector's loss of 3.37% and the S&P 500's loss of 3.76% in that time.

Wall Street will be looking for positivity from TSCO as it approaches its next earnings report date. This is expected to be October 22, 2020. In that report, analysts expect TSCO to post earnings of $2.68 per share. This would mark year-over-year growth of 157.69%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.39 billion, up 20.26% from the year-ago period.

TSCO's full-year Zacks Consensus Estimates are calling for earnings of $6.29 per share and revenue of $9.97 billion. These results would represent year-over-year changes of +34.4% and +19.42%, respectively.

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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. TSCO is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, TSCO is holding a Forward P/E ratio of 22.79. This valuation marks a premium compared to its industry's average Forward P/E of 12.94.

Meanwhile, TSCO's PEG ratio is currently 1.8. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Retail - Miscellaneous stocks are, on average, holding a PEG ratio of 3.11 based on yesterday's closing prices.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 125, which puts it in the top 50% 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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