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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 $232.23, marking a +0.01% move from the previous day. This move lagged the S&P 500's daily gain of 0.71%. Elsewhere, the Dow gained 0.27%, while the tech-heavy Nasdaq added 0.14%.

Prior to today's trading, shares of the retailer for farmers and ranchers had gained 15.71% over the past month. This has outpaced the Retail-Wholesale sector's gain of 2.3% and the S&P 500's gain of 3.76% in that time.

Tractor Supply will be looking to display strength as it nears its next earnings release. In that report, analysts expect Tractor Supply to post earnings of $1.39 per share. This would mark 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.

TSCO's full-year Zacks Consensus Estimates are calling for earnings of $9.38 per share and revenue of $13.76 billion. These results would represent year-over-year changes of +8.94% and +8.05%, respectively.

Investors should also note any recent changes to analyst estimates for Tractor Supply. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.15% higher. Tractor Supply is currently sporting a Zacks Rank of #2 (Buy).

In terms of valuation, Tractor Supply is currently trading at a Forward P/E ratio of 24.75. For comparison, its industry has an average Forward P/E of 11.92, which means Tractor Supply is trading at a premium to the group.

It is also worth noting that TSCO currently has a PEG ratio of 2.53. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Miscellaneous industry currently had an average PEG ratio of 1.01 as of yesterday's close.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 103, which puts it in the top 41% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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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