Tractor Supply Rides High on Growth and Strong Market Performance
Tractor Supply Company (TSCO), based in Brentwood, Tennessee, is a prominent rural lifestyle retailer with a market cap of $30.1 billion. The company offers a variety of products including farm maintenance supplies, animal feed, general maintenance items, lawn and garden tools, light truck equipment, work clothing, and more.
Stellar Stock Performance Outshines Competitors
Over the past year, TSCO has significantly outperformed the broader market. The stock has surged by 44.3%, while the S&P 500 Index ($SPX) has increased by approximately 31.3%. In 2024, TSCO stock is up 33%, exceeding the SPX’s 25.5% gain year-to-date (YTD).
When comparing TSCO’s performance to the VanEck Retail ETF (RTH), the gap in returns becomes even clearer. The ETF has gained about 27.7% over the same period, while TSCO’s YTD performance significantly outpaces the ETF’s 21.3% rise.
Strategic Moves for Future Expansion
TSCO recently expanded its market reach through the acquisition of the online platform Allivet, which is expected to grow its market size by $15 billion. The retailer plans to open more physical stores and enhance its customer loyalty program, aiming for increased customer retention and profitability in the future.
Mixed Earnings Report Sparks Investor Reaction
On October 24, TSCO shares fell by more than 6% following the release of its Q3 earnings report. The company posted earnings per share (EPS) of $2.24, slightly surpassing Wall Street’s expectations of $2.23. However, its revenue of $3.47 billion fell short of the forecast of $3.49 billion. Looking forward, TSCO anticipates a full-year EPS ranging from $10.10 to $10.40 and expects revenue between $14.9 billion and $15 billion.
For the current fiscal year ending in December, analysts project an EPS growth of 1.5% to reach $10.24 on a diluted basis. TSCO has shown a mixed earnings history, beating expectations in three of the last four quarters but missing on one occasion.
Analysts Weigh In on TSCO’s Future
Among the 31 analysts monitoring TSCO stock, the consensus rating is a “Moderate Buy,” which includes 14 “Strong Buy” recommendations, one “Moderate Buy,” 14 “Holds,” one “Moderate Sell,” and one “Strong Sell.” This outlook is less optimistic compared to the previous month, which saw 15 analysts suggesting a “Strong Buy.”
On November 25, Wells Fargo & Company (WFC) analyst Zachary Fadem reiterated a “Buy” rating on TSCO, setting a price target of $320—indicating an 11.9% potential upside. The average price target stands at $292.07, suggesting a slight 2.1% premium over the current stock price. A notable high price target of $335 highlights a potential upside of 17.1%.
On the date of publication, Neha Panjwani did not hold positions in any of the securities mentioned in this article. This article is for informational purposes only. For more details, please refer to the Barchart Disclosure Policy.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
