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Here's Why You Should Hold on to Tractor Supply (TSCO) Now
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Tractor Supply Company (TSCO - Free Report) is adapting to changing market dynamics and consistently achieving growth. The company's need-based, demand-driven business model has been proven resilient. Its steadfast commitment to meeting the needs of its customers has allowed it to establish a strong foothold in the industry.
Tractor Supply, the largest retail farm and ranch store chain in the United States, is optimistic about its prospects as it actively works to expand its competitive advantages. The company's Life Out Here strategy, aimed at enhancing the customer experience and meeting evolving demands, is progressing well.
TSCO experienced strong net sales growth of more than 9% in the first quarter of 2023. The company is confident about its overall outlook, citing continued share gains, the performance of its year-round product categories (driven by CUE products) and the successful scaling of strategic investments.
Management is optimistic about achieving net sales of $15-$15.3 billion in 2023, whereas comparable store sales are expected to grow 3.5-5.5%. The company recently raised its operating margin guidance to 10.1-10.3% from 9-9.5%.
On its last reported quarter’s earnings call, management highlighted that its mobile application was a significant contributor, accounting for more than 20% of its digital sales. The app's success is further evidenced by its impressive ranking among the top 100 shopping apps on the iOS store.
The above-mentioned achievement is a testament to the progress made in implementing Tractor Supply's ONETractor strategy, which aims to provide customers with a seamless and enhanced shopping experience. TSCO is committed to leveraging technology to meet evolving customer expectations and drive continued growth in the digital space.
Image Source: Zacks Investment Research
Strategic Acquisitions
Tractor Supply's top-line performance of first quarter was positively influenced by multiple factors, including the acquisition of Orscheln Farm and Home, which was completed in October 2022. The addition of Orscheln Farm and Home contributed to the company's overall revenue growth. Tractor Supply's expansion efforts through store openings played another significant role in driving top-line growth.
Conclusion
Tractor Supply has introduced the Field Activity Support Team, and implemented various technological and service enhancements across its operations to support its growth initiatives. The company is also in the initial stages of transforming side lots and mature stores to enhance space productivity, implement effective merchandising strategies, and solidify its position as a national brand with local relevance.
These efforts demonstrate Tractor Supply's commitment to continually evolve and provide an exceptional retail experience to its customers. All said, this Zacks Rank #3 (Hold) company has been redefining strategies and upgrading capabilities to stay ahead of the curve.
TSCO’s shares have advanced 6.6% in the past year compared with the industry’s growth of 19.3%.
Abercrombie & Fitch Co, a specialty retailer of premium, high-quality casual apparel, currently sports a Zacks Rank #1 (Strong Buy). The expected growth rate for the next five years is 18% per annum. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ANF’s current financial-year sales and earnings suggests growth of 3.4% and 732% from the year-ago period’s reported figures. ANF has a trailing four-quarter earnings surprise of 480.6%, on average.
ACV Auctions, which provides an online automotive marketplace for dealers and commercial partners, currently carries a Zacks Rank #2 (Buy). The company’s expected growth rate for the next five years is 0.80% per annum.
The Zacks Consensus Estimate for ACVA’s current financial-year sales and earnings suggests growth of 12.5% and 66% from the year-ago period’s actuals. ACVA has a trailing four-quarter earnings surprise of 22.4%, on average.
Carvana, a leading e-commerce platform for buying and selling used cars, currently carries a Zacks Rank #2. The company has an earning ESP of +2.05%
The Zacks Consensus Estimate for CNVA’s current financial-year earnings suggests growth of 37.2% from the year-ago period’s actual. CNVA has a trailing four-quarter earnings surprise of 3.8%, on average.
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Here's Why You Should Hold on to Tractor Supply (TSCO) Now
Tractor Supply Company (TSCO - Free Report) is adapting to changing market dynamics and consistently achieving growth. The company's need-based, demand-driven business model has been proven resilient. Its steadfast commitment to meeting the needs of its customers has allowed it to establish a strong foothold in the industry.
Tractor Supply, the largest retail farm and ranch store chain in the United States, is optimistic about its prospects as it actively works to expand its competitive advantages. The company's Life Out Here strategy, aimed at enhancing the customer experience and meeting evolving demands, is progressing well.
TSCO experienced strong net sales growth of more than 9% in the first quarter of 2023. The company is confident about its overall outlook, citing continued share gains, the performance of its year-round product categories (driven by CUE products) and the successful scaling of strategic investments.
Management is optimistic about achieving net sales of $15-$15.3 billion in 2023, whereas comparable store sales are expected to grow 3.5-5.5%. The company recently raised its operating margin guidance to 10.1-10.3% from 9-9.5%.
On its last reported quarter’s earnings call, management highlighted that its mobile application was a significant contributor, accounting for more than 20% of its digital sales. The app's success is further evidenced by its impressive ranking among the top 100 shopping apps on the iOS store.
The above-mentioned achievement is a testament to the progress made in implementing Tractor Supply's ONETractor strategy, which aims to provide customers with a seamless and enhanced shopping experience. TSCO is committed to leveraging technology to meet evolving customer expectations and drive continued growth in the digital space.
Image Source: Zacks Investment Research
Strategic Acquisitions
Tractor Supply's top-line performance of first quarter was positively influenced by multiple factors, including the acquisition of Orscheln Farm and Home, which was completed in October 2022. The addition of Orscheln Farm and Home contributed to the company's overall revenue growth. Tractor Supply's expansion efforts through store openings played another significant role in driving top-line growth.
Conclusion
Tractor Supply has introduced the Field Activity Support Team, and implemented various technological and service enhancements across its operations to support its growth initiatives. The company is also in the initial stages of transforming side lots and mature stores to enhance space productivity, implement effective merchandising strategies, and solidify its position as a national brand with local relevance.
These efforts demonstrate Tractor Supply's commitment to continually evolve and provide an exceptional retail experience to its customers. All said, this Zacks Rank #3 (Hold) company has been redefining strategies and upgrading capabilities to stay ahead of the curve.
TSCO’s shares have advanced 6.6% in the past year compared with the industry’s growth of 19.3%.
Bet Your Bucks on These Hot Stocks
Here we have highlighted three better-ranked stocks, namely Abercrombie & Fitch Co (ANF - Free Report) , ACV Auctions (ACVA - Free Report) and Carvana (CVNA - Free Report) .
Abercrombie & Fitch Co, a specialty retailer of premium, high-quality casual apparel, currently sports a Zacks Rank #1 (Strong Buy). The expected growth rate for the next five years is 18% per annum. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ANF’s current financial-year sales and earnings suggests growth of 3.4% and 732% from the year-ago period’s reported figures. ANF has a trailing four-quarter earnings surprise of 480.6%, on average.
ACV Auctions, which provides an online automotive marketplace for dealers and commercial partners, currently carries a Zacks Rank #2 (Buy). The company’s expected growth rate for the next five years is 0.80% per annum.
The Zacks Consensus Estimate for ACVA’s current financial-year sales and earnings suggests growth of 12.5% and 66% from the year-ago period’s actuals. ACVA has a trailing four-quarter earnings surprise of 22.4%, on average.
Carvana, a leading e-commerce platform for buying and selling used cars, currently carries a Zacks Rank #2. The company has an earning ESP of +2.05%
The Zacks Consensus Estimate for CNVA’s current financial-year earnings suggests growth of 37.2% from the year-ago period’s actual. CNVA has a trailing four-quarter earnings surprise of 3.8%, on average.