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Tractor Supply Company (TSCO), headquartered in Brentwood, Tennessee, operates as a rural lifestyle retailer. Valued at $30.1 billion by market cap, the company provides farm maintenance, animal, general maintenance, lawn and garden, light truck equipment, work clothing, and other products.
Shares of the largest rural lifestyle retailer have outperformed the broader market considerably over the past year. TSCO has gained 44.3% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 31.3%. In 2024, TSCO stock is up 33%, surpassing the SPX’s 25.5% rise on a YTD basis.
Zooming in further, TSCO’s outperformance is also apparent compared to the VanEck Retail ETF (RTH). The exchange-traded fund has gained about 27.7% over the past year. Moreover, TSCO’s returns on a YTD basis outshine the ETF’s 21.3% gains over the same time frame.
Tractor Supply's recent acquisition of online platform Allivet has helped the company expand its market by $15 billion. With plans to open more stores and improve its loyalty program, the company is set for future growth. This acquisition, along with the company's plans to open more stores and enhance its loyalty program, is expected to increase customer loyalty and drive higher profits in the coming years.
On Oct. 24, TSCO shares closed down more than 6% after reporting its Q3 results. Its EPS of $2.24 topped Wall Street expectations of $2.23. The company’s revenue was $3.47 billion, missing Wall Street forecasts of $3.49 billion. TSCO expects full-year EPS to be $10.10 to $10.40, and expects revenue in the range of $14.9 billion to $15 billion.
For the current fiscal year, ending in December, analysts expect TSCO’s EPS to grow 1.5% to $10.24 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing the forecast on another occasion.
Among the 31 analysts covering TSCO stock, the consensus is a “Moderate Buy.” That’s based on 14 “Strong Buy” ratings, one “Moderate Buy,” 14 “Holds,” one “Moderate Sell,” and one “Strong Sell.”
This configuration is less bullish than a month ago, with 15 analysts suggesting a “Strong Buy.”
On Nov. 25, Wells Fargo & Company (WFC) analyst Zachary Fadem maintained a “Buy” rating on TSCO with a price target of $320, implying a potential upside of 11.9% from current levels.
The mean price target of $292.07 represents a 2.1% premium to TSCO’s current price levels. The Street-high price target of $335 suggests an upside potential of 17.1%.
