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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.
