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Tractor Supply (TSCO) Outpaces Stock Market Gains: What You Should Know

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Tractor Supply (TSCO - Free Report) closed at $201.11 in the latest trading session, marking a +1.01% move from the prior day. This move outpaced the S&P 500's daily gain of 0.95%. Meanwhile, the Dow gained 0.8%, and the Nasdaq, a tech-heavy index, lost 0.28%.

Coming into today, shares of the retailer for farmers and ranchers had gained 0.43% in the past month. In that same time, the Retail-Wholesale sector lost 27.01%, while the S&P 500 gained 0.1%.

Tractor Supply will be looking to display strength as it nears its next earnings release. In that report, analysts expect Tractor Supply to post earnings of $3.48 per share. This would mark year-over-year growth of 9.09%. Meanwhile, our latest consensus estimate is calling for revenue of $3.87 billion, up 7.51% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $9.50 per share and revenue of $13.84 billion, which would represent changes of +10.34% and +8.75%, respectively, from the prior year.

Any recent changes to analyst estimates for Tractor Supply should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Tractor Supply is holding a Zacks Rank of #2 (Buy) right now.

Valuation is also important, so investors should note that Tractor Supply has a Forward P/E ratio of 20.95 right now. This valuation marks a premium compared to its industry's average Forward P/E of 9.26.

Investors should also note that TSCO has a PEG ratio of 2.14 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 1.33 based on yesterday's closing prices.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 150, putting it in the bottom 41% 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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