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Tractor Supply's Growth Initiatives Bode Well: Hold the Stock
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Leading retail farm and ranch store chain in the U.S., Tractor Supply Company (TSCO - Free Report) is well positioned, buoyed by its growth strategies, store expansion and technological advancements. Also, its share price has gained 12.9% in the past three months, clearly outperforming the Zacks categorized Retail-Miscellaneous/Diversified industry’s growth of 6.9%.
Tractor Supply’s growth initiatives are progressing well, which enable it to generate healthy sales and gain market share. The company leverages on an extensive network of stores to penetrate into target markets and is on track with its long-term domestic store growth target of 2,500 outlets. Moreover, it has launched a revamped website, alongside enhancing its omni-channel network, improving IT security and developing its customer-relationship marketing.
Tractor Supply has successfully modified the merchandise assortment across its stores. Moreover, management has increased the proportion of less discretionary items, such as animal and pet-related products, while reducing shelf space for certain big-ticket merchandise, like outdoor power equipment.
The company is also on track with its constant investments in new systems, including demand planning, improved pricing and inventory allocation, all of which are directed toward generating supply-chain efficiencies, in order to better manage global inventories. Moreover, cost-cutting efforts, along with strategic buyouts like Petsense, are also boding well.
However, the challenging economic backdrop at the agricultural and energy sectors has been taking a toll on consumer spending. These, along with soft demand for pre-season cold weather and heating products, have been weighing on the company’s top-line performance, for a while now.
Further, management retained its cautious stance on 2016, as the aforementioned obstacles and the company’s seasonal business remain concerns. The company reiterated 2016 earnings and envisioned the same in the band of $3.22–$3.26 per share.
Currently, Tractor Supply has a Zacks Rank #3 (Hold). Some better-ranked stocks include Big 5 Sporting Goods Corporation (BGFV - Free Report) , The Children's Place, Inc. (PLCE - Free Report) and ULTA Salon, Cosmetics & Fragrance, Inc. (ULTA - Free Report) .
Big 5 Sporting, with a long-term earnings growth rate of 12%, has skyrocketed 107.3% in the past six months. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Children's Place, a Zacks Rank #1 stock, has surged 94.6% year to date. The stock has a long-term earnings growth rate of 10.3%.
ULTA Salon, which carries a Zacks Rank #2 (Buy), has a long-term earnings growth rate of 19.5%. The stock has gained roughly 40.5% year to date.
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Tractor Supply's Growth Initiatives Bode Well: Hold the Stock
Leading retail farm and ranch store chain in the U.S., Tractor Supply Company (TSCO - Free Report) is well positioned, buoyed by its growth strategies, store expansion and technological advancements. Also, its share price has gained 12.9% in the past three months, clearly outperforming the Zacks categorized Retail-Miscellaneous/Diversified industry’s growth of 6.9%.
Tractor Supply’s growth initiatives are progressing well, which enable it to generate healthy sales and gain market share. The company leverages on an extensive network of stores to penetrate into target markets and is on track with its long-term domestic store growth target of 2,500 outlets. Moreover, it has launched a revamped website, alongside enhancing its omni-channel network, improving IT security and developing its customer-relationship marketing.
Tractor Supply has successfully modified the merchandise assortment across its stores. Moreover, management has increased the proportion of less discretionary items, such as animal and pet-related products, while reducing shelf space for certain big-ticket merchandise, like outdoor power equipment.
The company is also on track with its constant investments in new systems, including demand planning, improved pricing and inventory allocation, all of which are directed toward generating supply-chain efficiencies, in order to better manage global inventories. Moreover, cost-cutting efforts, along with strategic buyouts like Petsense, are also boding well.
However, the challenging economic backdrop at the agricultural and energy sectors has been taking a toll on consumer spending. These, along with soft demand for pre-season cold weather and heating products, have been weighing on the company’s top-line performance, for a while now.
Further, management retained its cautious stance on 2016, as the aforementioned obstacles and the company’s seasonal business remain concerns. The company reiterated 2016 earnings and envisioned the same in the band of $3.22–$3.26 per share.
TRACTOR SUPPLY Price and Consensus
TRACTOR SUPPLY Price and Consensus | TRACTOR SUPPLY Quote
Zacks Rank & Key Picks
Currently, Tractor Supply has a Zacks Rank #3 (Hold). Some better-ranked stocks include Big 5 Sporting Goods Corporation (BGFV - Free Report) , The Children's Place, Inc. (PLCE - Free Report) and ULTA Salon, Cosmetics & Fragrance, Inc. (ULTA - Free Report) .
Big 5 Sporting, with a long-term earnings growth rate of 12%, has skyrocketed 107.3% in the past six months. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Children's Place, a Zacks Rank #1 stock, has surged 94.6% year to date. The stock has a long-term earnings growth rate of 10.3%.
ULTA Salon, which carries a Zacks Rank #2 (Buy), has a long-term earnings growth rate of 19.5%. The stock has gained roughly 40.5% year to date.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>