Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Tractor Supply (NASDAQ:TSCO) and the best and worst performers in the specialty retail industry.

Some retailers try to sell everything under the sun, while others—appropriately called Specialty Retailers—focus on selling a narrow category and aiming to be exceptional at it. Whether it’s eyeglasses, sporting goods, or beauty and cosmetics, these stores win with depth of product in their category as well as in-store expertise and guidance for shoppers who need it. E-commerce competition exists and waning retail foot traffic impacts these retailers, but the magnitude of the headwinds depends on what they sell and what extra value they provide in their stores.

The 4 specialty retail stocks we track reported a mixed Q3. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 2.5% below.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 11.6% since the latest earnings results.

Tractor Supply (NASDAQ:TSCO)

Started as a mail-order tractor parts business, Tractor Supply (NASDAQ:TSCO) is a retailer of general goods such as agricultural supplies, hardware, and pet food for the rural consumer.

Tractor Supply reported revenues of $3.47 billion, up 1.6% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with EBITDA in line with analysts’ estimates.

“We delivered on our expectations for the third quarter amid a tepid retail sales environment while advancing our Life Out Here strategy. The fundamentals of our business remain strong with ongoing market share gains. With nearly 50% of our stores in Project Fusion layout and more than 550 garden centers, we continue to invest in our stores, supply chain and capabilities that build customer loyalty and elevate the standard for our sector. My thanks and appreciation go out to the entire Tractor Supply team for their engagement and commitment to serving Life Out Here, especially during this challenging hurricane season,” said Hal Lawton, President and Chief Executive Officer of Tractor Supply.

Tractor Supply achieved the highest full-year guidance raise of the whole group. Still, the market seems discontent with the results. The stock is down 6.6% since reporting and currently trades at $285.94.

Is now the time to buy Tractor Supply? Access our full analysis of the earnings results here, it’s free.

Best Q3: National Vision (NASDAQ:EYE)

Operating under multiple brands, National Vision (NYSE:EYE) sells optical products such as eyeglasses and provides optical services such as eye exams.

National Vision reported revenues of $451.5 million, up 2.9% year on year, in line with analysts’ expectations. The business had a very strong quarter with a solid beat of analysts’ EPS and EBITDA estimates.

National Vision scored the fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 6.6% since reporting. It currently trades at $11.41.

Is now the time to buy National Vision? Access our full analysis of the earnings results here, it’s free.

Weakest Q3: Leslie's (NASDAQ:LESL)

Named after founder Philip Leslie, who established the company in 1963, Leslie’s (NASDAQ:LESL) is a retailer that sells pool and spa supplies, equipment, and maintenance services.

Leslie's reported revenues of $397.9 million, down 8% year on year, falling short of analysts’ expectations by 1.8%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and gross margin estimates.

Leslie's delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 29.3% since the results and currently trades at $2.49.

Read our full analysis of Leslie’s results here.

Petco (NASDAQ:WOOF)

Historically known for its window displays of pets for sale or adoption, Petco (NASDAQ:WOOF) is a specialty retailer of pet food and supplies as well as a provider of services such as wellness checks and grooming.

Petco reported revenues of $1.51 billion, up 1.2% year on year. This number topped analysts’ expectations by 0.7%. Aside from that, it was a mixed quarter as it also recorded an impressive beat of analysts’ EPS estimates but EBITDA guidance for next quarter missing analysts’ expectations.

Petco achieved the biggest analyst estimates beat among its peers. The stock is down 8.4% since reporting and currently trades at $4.49.

Read our full, actionable report on Petco here, it’s free.

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), has fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty heading into 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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