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Tractor Supply (TSCO) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Tractor Supply (TSCO - Free Report) closed at $227.39, marking a -0.43% move from the previous day. This move lagged the S&P 500's daily loss of 0.14%. Elsewhere, the Dow lost 0.45%, while the tech-heavy Nasdaq lost 0.02%.

Coming into today, shares of the retailer for farmers and ranchers had lost 2.53% in the past month. In that same time, the Retail-Wholesale sector lost 4.76%, while the S&P 500 lost 0.13%.

Tractor Supply will be looking to display strength as it nears its next earnings release, which is expected to be January 27, 2022. The company is expected to report EPS of $1.83, up 11.59% 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 should also note any recent changes to analyst estimates for Tractor Supply. 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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Tractor Supply currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Tractor Supply currently has a Forward P/E ratio of 26.71. This represents a premium compared to its industry's average Forward P/E of 13.92.

Meanwhile, TSCO's PEG ratio is currently 2.62. 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. The Retail - Miscellaneous was holding an average PEG ratio of 0.68 at yesterday's closing price.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 49, which puts it in the top 20% 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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