#2 - Tractor Supply Company (NASDAQ:TSCO)
It seems that millions of Americans decided that getting a jump on their planting and landscaping was a productive activity to do while staying at home. It also appears that a global pandemic that is putting out rumors of food shortages is an incentive for Americans to plant gardens again. Both of these have been a catalyst for Tractor Supply Company (NASDAQ:TSCO).
Tractor Supply recently told analysts it is forecasting record-breaking numbers on both the top and bottom lines during its current quarter. The company also expects to see a 20% to 25% growth in comparable-store sales. This is music to investors ears as TSCO stock is up nearly 50% since the nationwide lockdowns began. As of this writing, the stock has the largest gain of any retail stock in the S&P 500.
The downside to this story is that Tractor Supply’s success is likely coming at the expense of local nurseries that may or may not have been deemed essential during the pandemic. As these businesses reopen (assuming they reopen) Tractor Supply’s rate of growth is likely to slow down. But habits can be hard to break. Consumers have become comfortable buying online and Tractor Supply reports an increase in online sales since the lockdowns began.
About Tractor Supply
Tractor Supply Company operates as a rural lifestyle retailer in the United States. The company offers various merchandise, including livestock and equine feed and equipment, poultry, fencing, and sprayers and chemicals; food, treats, and equipment for dogs, cats, and other small animals, as well as dog wellness products; seasonal and recreation products comprising tractors and riders, lawn and garden, bird feeding, power equipment, and other recreational products; truck, tool, and hardware products, such as truck accessories, trailers, generators, lubricants, batteries, and hardware and tools; and clothing, gift, and décor products consist of clothing, footwear, toys, snacks, and decorative merchandise.
Read More - Current Price
- $271.17
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 14 Buy Ratings, 8 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $251.25 (7.3% Downside)
