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Tractor Supply (TSCO) Gains As Market Dips: What You Should Know

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Tractor Supply (TSCO - Free Report) closed at $230.79 in the latest trading session, marking a +0.82% move from the prior day. This change outpaced the S&P 500's 1.42% loss on the day. Meanwhile, the Dow lost 0.49%, and the Nasdaq, a tech-heavy index, lost 0.47%.

Coming into today, shares of the retailer for farmers and ranchers had lost 3.4% in the past month. In that same time, the Retail-Wholesale sector lost 3.85%, while the S&P 500 gained 0.39%.

Wall Street will be looking for positivity from Tractor Supply as it approaches its next earnings report date. This is expected to be January 27, 2022. On that day, Tractor Supply is projected to report earnings of $1.83 per share, which would represent year-over-year growth of 11.59%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.21 billion, up 11.39% from the year-ago period.

Investors should also note any recent changes to analyst estimates for Tractor Supply. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Tractor Supply currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Tractor Supply is currently trading at a Forward P/E ratio of 26.78. Its industry sports an average Forward P/E of 13.04, so we one might conclude that Tractor Supply is trading at a premium comparatively.

Meanwhile, TSCO's PEG ratio is currently 2.62. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Miscellaneous industry currently had an average PEG ratio of 0.68 as of yesterday's close.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 73, which puts it in the top 29% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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