Tractor Supply Company (TSCO), headquartered in Brentwood, Tennessee, operates as a rural lifestyle retailer. Valued at $28.6 billion by market cap, the company provides farm maintenance, animal, general maintenance, lawn and garden, light truck equipment, work clothing, and other products.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and TSCO perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the specialty retail industry. TSCO is a trusted, one-stop retailer known for its commitment to quality and service. It strategically locates stores in rural areas to minimize competition and builds strong customer loyalty through its rewards program, the Neighbor's Club.
Despite its notable strength, TSCO slipped 15.5% from its 52-week high of $63.99, achieved on Jul. 24. Over the past three months, TSCO stock has declined 10.6%, underperforming the Nasdaq Composite’s ($NASX) 8.7% gains during the same time frame.
In the longer term, shares of TSCO rose 5.1% on a six-month basis but dipped 4.3% over the past 52 weeks, underperforming NASX’s six-month gains of 22.2% and solid 19.7% returns over the last year.
To confirm the bearish trend, TSCO has been trading below its 200-day moving average since early October, with slight fluctuations. The stock has been trading below its 50-day moving average since late September, with minor fluctuations.
On Oct. 23, TSCO shares closed up by 2.8% after reporting its Q3 results. Its EPS of $0.49 exceeded Wall Street's $0.48 estimate. The company’s revenue was $3.7 billion, matching Wall Street forecasts. TSCO expects full-year EPS to be $2.06 to $2.13.
In the competitive arena of specialty retail, Petco Health and Wellness Company, Inc. (WOOF)has lagged behind the stock, with a 16.9% downtick on a six-month basis and a 38.6% dip over the past 52 weeks.
Wall Street analysts are reasonably bullish on TSCO’s prospects. The stock has a consensus “Moderate Buy” rating from the 30 analysts covering it, and the mean price target of $64.36 suggests a potential upside of 19% from current price levels.
On the date of publication, Neha Panjwani 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.
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