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Tractor Supply (TSCO) Gains But Lags Market: What You Should Know

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In the latest trading session, Tractor Supply (TSCO - Free Report) closed at $149.93, marking a +0.48% move from the previous day. The stock lagged the S&P 500's daily gain of 0.88%. Elsewhere, the Dow gained 0.57%, while the tech-heavy Nasdaq added 1.39%.

Heading into today, shares of the retailer for farmers and ranchers had gained 8.29% over the past month, outpacing the Retail-Wholesale sector's gain of 4.88% and the S&P 500's gain of 3.54% 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. The company is expected to report EPS of $1.33, up 27.88% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.39 billion, up 20.26% from the year-ago period.

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.

Any recent changes to analyst estimates for TSCO should also be noted by investors. Recent revisions tend to reflect the latest 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.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. TSCO is holding a Zacks Rank of #4 (Sell) right now.

Investors should also note TSCO's current valuation metrics, including its Forward P/E ratio of 23.72. For comparison, its industry has an average Forward P/E of 13.97, which means TSCO is trading at a premium to the group.

We can also see that TSCO currently has a PEG ratio of 1.87. 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. TSCO's industry had an average PEG ratio of 3.12 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 89, which puts it in the top 36% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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