Last Updated: 13 Sep 2024
Executive Summary
Tractor Supply Company (TSCO) is a leading retailer of products for home improvement, agriculture, lawn and garden maintenance, livestock, equine and pet care. The company has a strong financial position, with a market capitalization of $30.15 billion, an EBITDA of $1.91 billion, and a profit margin of 7.66%. TSCO's stock is currently trading at $279.49, with a trailing PE ratio of 26.98 and a forward PE ratio of 24.75. Analysts are bullish on the stock, with 5 strong buy ratings, 11 buy ratings, and 14 hold ratings.
Company Overview
Tractor Supply Company was founded in 1938 and is headquartered in Brentwood, Tennessee. The company operates over 1,900 stores in 49 states. TSCO's target market is rural and suburban homeowners, farmers, and ranchers. The company offers a wide range of products, including tools, hardware, lawn and garden supplies, livestock feed, and pet supplies.
Fundamental Analysis
TSCO's financial performance has been strong in recent years. The company's revenue has grown by an average of 5.1% over the past five years, and its EPS has grown by an average of 10.2%. TSCO's profit margin has also expanded in recent years, from 6.8% in 2017 to 7.66% in 2023.
TSCO's balance sheet is also strong. The company has a low level of debt and a high level of cash on hand. TSCO's current ratio is 1.5, and its debt-to-equity ratio is 0.3.
Technical Analysis
TSCO's stock price has been trending higher in recent months. The stock broke out of a trading range in late 2022 and has since reached a new 52-week high of $289.19. The stock's moving averages are also trending higher, and the stock is currently trading above its 50-day and 200-day moving averages.
Short Term Outlook
TSCO's stock is expected to continue to trade higher in the short term. The company's strong financial performance and positive technical indicators suggest that the stock is likely to continue to outperform the market.
Long Term Outlook
TSCO's long-term outlook is also positive. The company's target market is growing, and the company is well-positioned to benefit from the increasing popularity of rural living. TSCO's strong financial position and experienced management team also give the company a competitive advantage.
Analyst Recommendations
Analysts are bullish on TSCO's stock. The consensus analyst rating is buy, with a target price of $272.63. Five analysts have a strong buy rating on the stock, 11 analysts have a buy rating, and 14 analysts have a hold rating.
Conclusion
Tractor Supply Company is a well-positioned company with a strong financial position and a positive long-term outlook. The company's stock is expected to continue to trade higher in the short and long term.
