How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Tractor Supply (
TSCO Quick Quote TSCO - Free Report) ten years ago? It may not have been easy to hold on to TSCO for all that time, but if you did, how much would your investment be worth today? Tractor Supply's Business In-Depth
With that in mind, let's take a look at Tractor Supply's main business drivers.
Headquartered in Brentwood, TN, Tractor Supply Company is the largest retail farm and ranch store chain in the United States. The company focuses on recreational farmers and ranchers as well as tradesmen and small businesses. It offers a wide array of merchandise such as livestock, pet and animal products, maintenance products for agricultural and rural use, hardware and tools, lawn and garden power equipment, truck and towing products, and work apparel.
Stores of Tractor Supply are primarily located in rural areas and the suburbs of major cities, which have inside selling space of 15,000–20,000 square feet with a similar area of outside space, used to demonstrate agricultural fencing, livestock equipment and horse stalls. Petsense stores have roughly 5,500 square feet of inside selling space. For Tractor Supply retail locations, the company has a standard design for the new built-to-suit locations, including nearly 15,500 square feet of inside selling space. Tractor Supply’s broad assortment of products is tailored to meet the regional and geographic needs of its markets. Moreover, the retailer’s full line of product offerings is supported by a strong in-stock inventory position with an average of 16,000–19,500 unique products per store. Apart from selling nationally recognized branded merchandise, the company also markets an increasing list of products under its “private-label programs.” The latter include Masterhand and Job Smart (tools and tool chests), Dumor and Producers Pride (livestock feed) and Retriever and Paws ‘n Claws (pet foods). Further, the company recently acquired 100% stake in Petsense, to fortify its presence in the pet specialty space. Tractor Supply operates retail stores under the names Tractor Supply Company, Del’s Feed & Farm Supply, and Petsense as well as operate websites under the names TractorSupply.com and Petsense.com. Its online selling websites are expected to offer expanded assortment of products beyond in-store as well as boost store traffic through buy online, pickup in-store and ship to store programs. As of Jun 26, 2021, the company operated 1,955 Tractor Supply stores across 49 states and 174 Petsense stores in 23 states. Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Tractor Supply a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in September 2011 would be worth $6,315.30, or a 531.53% gain, as of September 24, 2021. Investors should keep in mind that this return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 291.49% and gold's return of 2.32% over the same time frame.
Analysts are anticipating more upside for TSCO.
Shares of Tractor Supply have outpaced the industry year to date driven by a robust surprise trend. The company’s earnings and sales beat estimates in second-quarter 2021, marking the sixth straight earnings surprise and fifth consecutive sales beat. Results gained from robust comps growth across all regions and key categories on strength in demand for seasonal categories and everyday merchandise such as consumable, usable and edible products. It witnessed record e-commerce sales in the second quarter on the back of mobile app and the Neighbor's Club loyalty program. Management raised its 2021 view. The company’s Life Out Here and ‘ONETractor’ strategies also bode well. However, higher imports, freight, wages, and commodity costs remain concerns. Consequently, it expects gross margin to decline in the second half of 2021.
Over the past four weeks, shares have rallied 10.74%, and there have been 2 higher earnings estimate revisions in the past two months for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.