In the latest trading session, Tractor Supply (TSCO) closed at $149.31, marking a +1.49% move from the previous day. The stock outpaced the S&P 500’s daily gain of 0.55%. At the same time, the Dow added 0.18%, and the tech-heavy Nasdaq gained 1.03%.
Coming into today, shares of the retailer for farmers and ranchers had gained 8.22% in the past month. In that same time, the Retail-Wholesale sector lost 1.11%, while the S&P 500 gained 3.13%.
Investors will be hoping for strength from TSCO as it approaches its next earnings release. The company is expected to report EPS of $1.46, up 20.66% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.68 billion, up 22.19% from the year-ago period.
Any recent changes to analyst estimates for TSCO should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. TSCO currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, TSCO is holding a Forward P/E ratio of 22.94. For comparison, its industry has an average Forward P/E of 10.69, which means TSCO is trading at a premium to the group.
Investors should also note that TSCO has a PEG ratio of 1.96 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. TSCO’s industry had an average PEG ratio of 1.8 as of yesterday’s close.
The Retail – Miscellaneous industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 17, putting it in the top 7% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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