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Tractor Supply (TSCO) Stock Up 23.3% YTD: Should You Invest?
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Tractor Supply Company (TSCO - Free Report) has been doing well, thanks to its sturdy business strategies. The company is benefiting from its Life Out Here Strategy and the Neighbor’s Club membership program. Its ‘ONETractor’ strategy, which is aimed at connecting stores and online shopping, appears encouraging too.
Let’s Delve Deeper
Given the changing consumer trends, Tractor Supply is focused on integrating its physical and digital operations to offer consumers a seamless shopping experience. The company’s omnichannel investments include curbside pickup, same-day and next-day delivery, a re-launched website and a new mobile app. Earlier, it launched Tractor Supply, Visa Credit Card, which allows customers to earn points on their everyday purchases, both in-store and anywhere Visa is accepted. The buyout of Orscheln Farm and Home is also contributing to the results.
The company’s Neighbor's Club program also bodes well. It has been significantly enhancing its Neighbor's Club offering. The company’s digital business reached another year of record sales in 2023, generating more than $1 billion in annual sales for the first time. It aims at leveraging AI technologies to boost search, redesign checkout and add a new refreshed homepage on personalization.
Image Source: Zacks Investment Research
Regarding its store-growth initiatives, Tractor Supply is focused on the expansion of its store base and the incorporation of technological advancements to induce traffic and boost the overall top line. The company is well-positioned to expand its store base, remaining on track to increase its domestic store count to 2,500 in the long term.
In the first quarter of 2024, it opened 17 Tractor Supply stores and four Petsense by Tractor Supply stores. TSCO has also completed the rebranding of 81 Orscheln Farm and Home stores, which were acquired in 2022. Its new store productivity in 2023 was nearly 67% of its mature store average. Management intends to continue its store-opening initiatives in 2024.
The Project Fusion is the company’s state-of-the-art space productivity program built to enrich customer experience. Another key component of its space productivity initiatives is the transformation of its Side Lot. It expects to complete the aforementioned Orscheln Farm and Home conversions, as well as the Project Fusion remodels and garden center transformations. The company’s Project Fusion and Side Lot model transformations have been significant investments toward stores. These store investments target achieving higher market share and boosting productivity across the existing and new stores.
Final Thoughts
Buoyed by such endeavors, this Zacks Rank #2 (Buy) company has gained 23.3% year to date against the industry’s 3.8% decline.
Analysts seem quite optimistic about the company. The Zacks Consensus Estimate for 2024 sales and earnings per share (EPS) is currently pegged at $15 billion and $10.34, respectively. These estimates indicate corresponding growth of 3% and 2.5% year over year.
Based on the aforesaid strengths, Tractor Supply stock deserves a place in your investment bucket.
The Zacks Consensus Estimate for Abercrombie & Fitch’s current financial-year sales indicates growth of 10.4% from the year-ago reported figure. ANF delivered an earnings surprise of 28.9% in the last reported quarter.
Gap, a leading apparel retailer, currently sports a Zacks Rank of 1. GPS delivered an average earnings surprise of 202.7% in the trailing four quarters.
The Zacks Consensus Estimate for Gap’s current financial-year sales indicates growth of 0.2% from the year-ago reported figure.
Deckers, a footwear and accessories dealer, currently carries a Zacks Rank of 2. DECK delivered an average earnings surprise of 42.8% in the trailing four quarters.
The Zacks Consensus Estimate for Deckers’ current financial-year sales indicates growth of 15.6% from the year-ago reported figure.
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Tractor Supply (TSCO) Stock Up 23.3% YTD: Should You Invest?
Tractor Supply Company (TSCO - Free Report) has been doing well, thanks to its sturdy business strategies. The company is benefiting from its Life Out Here Strategy and the Neighbor’s Club membership program. Its ‘ONETractor’ strategy, which is aimed at connecting stores and online shopping, appears encouraging too.
Let’s Delve Deeper
Given the changing consumer trends, Tractor Supply is focused on integrating its physical and digital operations to offer consumers a seamless shopping experience. The company’s omnichannel investments include curbside pickup, same-day and next-day delivery, a re-launched website and a new mobile app. Earlier, it launched Tractor Supply, Visa Credit Card, which allows customers to earn points on their everyday purchases, both in-store and anywhere Visa is accepted. The buyout of Orscheln Farm and Home is also contributing to the results.
The company’s Neighbor's Club program also bodes well. It has been significantly enhancing its Neighbor's Club offering. The company’s digital business reached another year of record sales in 2023, generating more than $1 billion in annual sales for the first time. It aims at leveraging AI technologies to boost search, redesign checkout and add a new refreshed homepage on personalization.
Image Source: Zacks Investment Research
Regarding its store-growth initiatives, Tractor Supply is focused on the expansion of its store base and the incorporation of technological advancements to induce traffic and boost the overall top line. The company is well-positioned to expand its store base, remaining on track to increase its domestic store count to 2,500 in the long term.
In the first quarter of 2024, it opened 17 Tractor Supply stores and four Petsense by Tractor Supply stores. TSCO has also completed the rebranding of 81 Orscheln Farm and Home stores, which were acquired in 2022. Its new store productivity in 2023 was nearly 67% of its mature store average. Management intends to continue its store-opening initiatives in 2024.
The Project Fusion is the company’s state-of-the-art space productivity program built to enrich customer experience. Another key component of its space productivity initiatives is the transformation of its Side Lot. It expects to complete the aforementioned Orscheln Farm and Home conversions, as well as the Project Fusion remodels and garden center transformations. The company’s Project Fusion and Side Lot model transformations have been significant investments toward stores. These store investments target achieving higher market share and boosting productivity across the existing and new stores.
Final Thoughts
Buoyed by such endeavors, this Zacks Rank #2 (Buy) company has gained 23.3% year to date against the industry’s 3.8% decline.
Analysts seem quite optimistic about the company. The Zacks Consensus Estimate for 2024 sales and earnings per share (EPS) is currently pegged at $15 billion and $10.34, respectively. These estimates indicate corresponding growth of 3% and 2.5% year over year.
Based on the aforesaid strengths, Tractor Supply stock deserves a place in your investment bucket.
Other Key Picks
We have highlighted three other top-ranked stocks, namely Abercrombie & Fitch (ANF - Free Report) , Gap (GPS - Free Report) and Deckers (DECK - Free Report) .
Abercrombie & Fitch, a leading casual apparel retailer, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Abercrombie & Fitch’s current financial-year sales indicates growth of 10.4% from the year-ago reported figure. ANF delivered an earnings surprise of 28.9% in the last reported quarter.
Gap, a leading apparel retailer, currently sports a Zacks Rank of 1. GPS delivered an average earnings surprise of 202.7% in the trailing four quarters.
The Zacks Consensus Estimate for Gap’s current financial-year sales indicates growth of 0.2% from the year-ago reported figure.
Deckers, a footwear and accessories dealer, currently carries a Zacks Rank of 2. DECK delivered an average earnings surprise of 42.8% in the trailing four quarters.
The Zacks Consensus Estimate for Deckers’ current financial-year sales indicates growth of 15.6% from the year-ago reported figure.