The shares of
Tractor Supply Company
) reached a new 52-week high of $77.00 on Monday, Dec 23, closing
trade slightly below at $75.95. This farm and ranch store chain
retailer has been on the rise driven by its consistent focus on
maximizing productivity, expanding store base, technological
advancements and initiatives to expand its brand portfolio.
Moreover, this stock looks promising on strong metrics, having
generated a year-to-date return of roughly 65.4%. The average
volume of shares traded over the last 3 months was approximately
978.8K. The company currently trades at a forward P/E of 33.2x, a
72.9% premium to the peer group average of 19.2x. The company's
premium valuation is justified, as its long-term forecasted
earnings per share (EPS) growth rate of 17.9% is higher than the
peer group average of 16.2%.
Tractor Supply is the largest operator of farm and ranch stores
in the U.S., and has a unique market niche of serving the
lifestyle needs of recreational farmers and ranchers. The company
continues to progress well on its growth initiatives focused on
expanding its store base and incorporating technological
advancements to serve clients better.
Additionally, the company is working towards modifying the
merchandise assortment across its stores in line with the change
in consumer preferences due to the prolonged economic downturn.
We believe these initiatives will induce more traffic to its
stores and boost the top line.
Apart from the aforementioned reason, the company's track record
of posting robust quarterly earnings, an upbeat guidance and a
solid financial position induced a positive movement in the
The earnings surprise history of this Zacks Rank #2 (Buy) company
shows that it has outperformed the Zacks Consensus Estimate for
nearly five consecutive years, the only exception being
first-quarter 2013 in which the company posted in-line earnings.
The average surprise for the trailing four quarters stands at
In third-quarter fiscal 2013, the company posted strong financial
results with adjusted earnings of 46 cents per share, up 31.4%
year over year. The results also surpassed the Zacks Consensus
Estimate of 41 cents. Tractor Supply's total revenue rose 13.4%
to $1,208.1 million in the quarter.
The company raised its outlook for fiscal 2013, projecting sales
in the range of $5.12-$5.17 billion, with comps expected to
improve 4.2%−5.0%. Moreover, Tractor Supply now anticipates 2013
earnings per share in the range of $2.24 to $2.27.
The encouraging results and a favorable outlook triggered an
upward thrust in the Zacks Consensus Estimate. For the fourth
quarter of fiscal 2013, the Zacks Consensus Estimate of 65 cents
increased by a penny in the last 60 days. For fiscal 2013 it
escalated 1.8% to $2.28 a share over the same time frame.
Apart from Tractor Supply, companies such as
) achieved new 52-week highs of $61.90, $157.02 and $97.87,
respectively, on Dec 23, 2013.
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