Is Tractor Supply Stock Outperforming the Dow?
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Headquartered in Brentwood, Tennessee, Tractor Supply Company (TSCO) is the largest rural lifestyle retailer in the U.S. Valued at a market cap of $28.2 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. Tractor Supply stands as a vital force in rural commerce, offering a broad selection of products, from farm equipment to pet supplies, tailored to meet the needs of farmers, ranchers, and rural homeowners across the country.
TSCO shares are trading 12.4% below their 52-week high of $61.53, which they hit on Oct. 15. The stock has fallen 1.9% over the past three months, underperforming the Dow Jones Industrials Average’s ($DOWI) 1.9% gains during the same time frame.
However, over the longer term, TSCO outpaced Dow Jones Industrial. The stock is up 25.9% on a YTD basis, and the shares have gained by 28.5% over the past 52 weeks. In comparison, the DOWI has gained 13.7% in 2024 and rallied 15.5% over the past year.
TSCO has recently been trading below its 50-day and 200-day moving averages, indicating a bearish trend.
On Oct. 24, TSCO shares dropped over 6% after reporting its Q3 results. Tractor Supply reported an EPS of $2.24, slightly surpassing Wall Street's estimate of $2.23, while its revenue came in at $3.47 billion, falling short of the $3.49 billion forecast. For the full year, the company projects EPS between $10.10 and $10.40, with revenue expected to range from $14.9 billion to $15 billion.
Highlighting the contrast in performance, TSCO's competitor, O'Reilly Automotive, Inc. (ORLY), has outperformed the stock. ORLY has gained 28.3% 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 31 analysts in coverage. The mean price target is $292.83, which indicates that the stock trades at a premium of 443.1% from the current market prices.
On the date of publication, Kritika Sarmah 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.