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Tractor Supply (TSCO) Gains But Lags Market: What You Should Know

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In the latest trading session, Tractor Supply (TSCO) closed at $233.35, marking a +0.48% move from the previous day. The stock lagged the S&P 500's daily gain of 1.23%. Elsewhere, the Dow gained 0.97%, while the tech-heavy Nasdaq added 0.44%.

Heading into today, shares of the retailer for farmers and ranchers had gained 13.96% over the past month, outpacing the Retail-Wholesale sector's gain of 4.33% and the S&P 500's gain of 4.69% in that time.

Wall Street will be looking for positivity from Tractor Supply as it approaches its next earnings report date. On that day, Tractor Supply is projected to report earnings of $1.39 per share, which would represent a year-over-year decline of 10.32%. Meanwhile, our latest consensus estimate is calling for revenue of $2.9 billion, up 3.83% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.38 per share and revenue of $13.76 billion. These totals would mark changes of +8.94% and +8.05%, respectively, from last year.

Any recent changes to analyst estimates for Tractor Supply should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.15% higher within the past month. Tractor Supply currently has a Zacks Rank of #2 (Buy).

Investors should also note Tractor Supply's current valuation metrics, including its Forward P/E ratio of 24.76. This valuation marks a premium compared to its industry's average Forward P/E of 11.9.

It is also worth noting that TSCO currently has a PEG ratio of 2.53. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Retail - Miscellaneous stocks are, on average, holding a PEG ratio of 1 based on yesterday's closing prices.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 110, which puts it in the top 44% 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.

To follow TSCO in the coming trading sessions, be sure to utilize Zacks.com.

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