Tractor Supply Co (TSCO) recently spiked into a new all-time high after reporting awesome Q3 results that included a 12% earnings surprise. With estimates on the rise and a bullish growth projection, this Zacks #1 Rank stock offers momentum from the Heartland.
Company Description
Tractor Supply Company operates retail farm and ranch stores in the United States. The company was founded in 1938 and has a market cap of $5.2 billion.
We got an update on Tractor Supply’s business on October 20 with strong Q3 results that came in ahead of expectations.
Third-Quarter Results
Revenue for the period was up 18% from last year to $978 million. Earnings also came in strong at 58 cents, 12% ahead of the Zacks Consensus Estimate, where the company has an average earnings surprise of 18% over the last four quarters.
The good quarter was driven by strong same-store sales, up 11.5%, a big improvement from last year’s 5% increase.
Estimates
We’ve seen some decent movement in estimates off the good quarter, with the current year adding 8 cents to $2.91 while the next-year estimate added 12 cents to $3.37, a bullish 16% growth projection.
Valuation
With a peg ratio of 1.39, TSCO trades at a premium to the benchmark of 1 for value.
12-Month Chart
On the chart, shares have been rallying for the past 2 months in spite of the weak market, hitting a new all-time high in the process. Take a look below.
Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Whisper Trader Service.
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