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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 $235.72 in the latest trading session, marking a -1.21% move from the prior day. This change lagged the S&P 500's daily gain of 0.64%. Meanwhile, the Dow gained 0.68%, and the Nasdaq, a tech-heavy index, added 0.46%.

Prior to today's trading, shares of the retailer for farmers and ranchers had gained 4.67% over the past month. This has outpaced the Retail-Wholesale sector's loss of 0.1% and the S&P 500's gain of 4.56% in that time.

Investors will be hoping for strength from Tractor Supply as it approaches its next earnings release. The company is expected to report EPS of $1.64, unchanged from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.21 billion, up 11.39% from the year-ago period.

Investors might also notice recent changes to analyst estimates for Tractor Supply. Recent revisions tend to reflect the latest near-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. 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. Tractor Supply is holding a Zacks Rank of #2 (Buy) right now.

Looking at its valuation, Tractor Supply is holding a Forward P/E ratio of 28.03. This represents a premium compared to its industry's average Forward P/E of 16.55.

Investors should also note that TSCO has a PEG ratio of 2.75 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Retail - Miscellaneous stocks are, on average, holding a PEG ratio of 0.69 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 48, which puts it in the top 19% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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