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

In the latest trading session, Tractor Supply (TSCO) closed at $145.51, marking a +0.89% move from the previous day. This move outpaced the S&P 500's daily gain of 0.58%. Elsewhere, the Dow gained 0.49%, while the tech-heavy Nasdaq added 0.84%.

Prior to today's trading, shares of the retailer for farmers and ranchers had gained 12.31% over the past month. This has outpaced the Retail-Wholesale sector's gain of 2.51% and the S&P 500's gain of 2.12% in that time.

Investors will be hoping for strength from TSCO as it approaches its next earnings release. On that day, TSCO is projected to report earnings of $1.46 per share, which would represent year-over-year growth of 20.66%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.68 billion, up 22.19% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.68 per share and revenue of $10.41 billion. These totals would mark changes of +42.74% and +24.7%, respectively, from last year.

Any recent changes to analyst estimates for TSCO should also be noted by investors. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. TSCO is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note TSCO's current valuation metrics, including its Forward P/E ratio of 21.58. This valuation marks a premium compared to its industry's average Forward P/E of 9.21.

It is also worth noting that TSCO currently has a PEG ratio of 1.84. 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 1.59 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 43, which puts it in the top 17% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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