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Tractor Supply Company (TSCO), headquartered in Brentwood, Tennessee, is the largest rural lifestyle retailer in the U.S. With a market cap of $29.84 billion, Tractor Supply caters to the needs of farmers, ranchers, and rural homeowners by offering a wide array of products, including livestock feed, agricultural equipment, and home improvement supplies.
Companies valued at around $10 billion or more are classified as "large-cap stocks," and Tractor Supply is a notable example of this. With its extensive range of products, from farm equipment to pet supplies, Tractor Supply is a key player in rural commerce, providing essential goods and services to farmers, ranchers, and rural homeowners nationwide.
TSCO shares are trading 5.1% below their 52-week high of $290.38, which they hit on Jun. 18. The stock has declined 5% over the past three months, underperforming the broader Nasdaq Composite ($NASX), which is down 1.6% over the same time frame.
In the longer term, TSCO is up 28.1% on a YTD basis, and the shares have gained by 31.5% over the past 52 weeks. In comparison, the Nasdaq has gained 17.1% in 2024 and rallied 28.2% over the past year.
TSCO has been trading above its 50-day moving average since late August and the 200-day moving average since early January, indicating a bullish trend.
TSCO’s shares fell 1.9% following its Q2 earnings release on Jul. 25, primarily due to its weaker-than-expected full-year guidance, which raised concerns about its ability to meet investor expectations. Its adjusted EPS of $3.93 missed Wall Street estimates of $3.94. The company also missed revenue forecasts, posting $4.25 billion compared to the expected $4.28 billion. TSCO expects full-year earnings to be $10 to $10.40 per share, with revenue in the range of $14.8 billion to $15 billion.
Highlighting the contrast in performance, TSCO's competitor, O'Reilly Automotive, Inc. (ORLY), has underperformed the stock. ORLY has gained 19.3% on a YTD basis.
Analysts are moderately bullish about TSCO's prospects despite its recent underperformance. The stock has a consensus rating of "Moderate Buy" from 28 analysts in coverage. The mean price target is $271.68, which indicates that the stock trades at a premium.
On the date of publication, Rashmi Kumari 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.
