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Tractor Supply (TSCO) Stock Sinks As Market Gains: What You Should Know

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Tractor Supply (TSCO) closed at $227.12 in the latest trading session, marking a -0.33% move from the prior day. This move lagged the S&P 500's daily gain of 2.24%. Elsewhere, the Dow gained 1.55%, while the tech-heavy Nasdaq added 0.44%.

Heading into today, shares of the retailer for farmers and ranchers had gained 3.81% over the past month, outpacing the Retail-Wholesale sector's loss of 6.16% and the S&P 500's loss of 4.46% in that time.

Investors will be hoping for strength from Tractor Supply as it approaches its next earnings release. 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, the Zacks Consensus Estimate for revenue is projecting net sales of $2.9 billion, up 3.82% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $9.40 per share and revenue of $13.77 billion, which would represent changes of +9.18% and +8.18%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Tractor Supply. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.31% higher. Tractor Supply currently has a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that Tractor Supply has a Forward P/E ratio of 24.25 right now. This valuation marks a premium compared to its industry's average Forward P/E of 11.29.

It is also worth noting that TSCO currently has a PEG ratio of 2.48. 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 was holding an average PEG ratio of 0.76 at yesterday's closing price.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 85, putting it in the top 34% 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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