Tractor Supply Company Faces Stock Challenges But Shows Long-Term Promise
Market Overview and Company Profile
Tractor Supply Company (TSCO), based in Brentwood, Tennessee, is recognized as the largest rural lifestyle retailer in the United States. With a market capitalization of $28.2 billion, the company serves farmers, ranchers, and rural homeowners by providing a diverse range of products, including livestock feed, agricultural tools, and home improvement items.
As a “large-cap stock,” companies like Tractor Supply have market valuations of $10 billion or more. TSCO plays a crucial role in rural commerce, offering various products essential for agricultural and home needs across the country.
Stock Performance Insights
Currently, TSCO shares are trading 12.4% lower than their 52-week peak of $61.53, reached on October 15. In recent months, the stock has seen a 1.9% decline, while the Dow Jones Industrial Average ($DOWI) gained 1.9% in the same period.
Despite recent declines, TSCO has shown robust performance over a longer horizon. The stock is up 25.9% year-to-date and has increased by 28.5% over the last 52 weeks. In contrast, the Dow Jones has achieved a 13.7% gain in 2024 and a 15.5% increase over the past year.
Currently, TSCO trades below both its 50-day and 200-day moving averages, signaling a bearish market trend.
Recent Earnings Report and Market Reaction
On October 24, TSCO shares fell by more than 6% following the release of its Q3 earnings. The company reported earnings per share (EPS) of $2.24, slightly above the Wall Street expectation of $2.23. However, revenue of $3.47 billion did not meet the forecast of $3.49 billion. Looking ahead, Tractor Supply expects its EPS to fall between $10.10 and $10.40, with projected revenue ranging from $14.9 billion to $15 billion.
In comparison, TSCO’s competitor, O’Reilly Automotive, Inc. (ORLY), has performed more strongly, showing a YTD increase of 28.3%.
Analysts’ Outlook
Despite its recent struggles, analysts maintain a moderately positive outlook on TSCO’s future. The stock holds a consensus rating of “Moderate Buy” from 31 analysts. The average price target stands at $292.83, suggesting a significant potential upside of 443.1% from current market prices.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
