“The Stuff You Need Out Here” is a slogan that totally summarizes the total offering of this American retail chain which can trace it roots back to 1938 when it was founded as a mail order tractor parts business. Today it’s a completely different story and guess what? The Tractor Supply Company do not sell tractors!
Tractor Supply Company made our list of most purchased stock over the period of 26 -30 August and it has definitely sparked my interest so let’s take a closer look.
Taking a closer look at the fundamentals and especially the latest earnings released on the 25th of July 2019. Revenue was pretty much in line with expectations and the company’s Earnings Per Share (EPS) missed by $0.01 and raised the lower end of its FY2019 guidance.
Tractor Supply Company also declared a quarterly dividend of $0.35 per share which is in line with previous. We just missed this one as the Ex-Dividend date was on the 23rd of August.
Tractor Supply Company Share Overview:
- Market Cap of $11.92 Billion
- Dividend Yield: 1.37% %
- Shares in issue: 119,264,959
- PE Ratio: 22.3
- 52 Week Range low of $77.92 and high of $112.58 per share.
The company is expanding operations with 80 new Tractor Supply stores and 10 to 15 new Petsense locations planned for FY2019 which might take away from their bottom line in the short term. The recent resignation of the companies COO has put a damper on the share price which is currently lacking positive momentum. Analysts are optimistic and revised their outlook upwards for the stock in the coming months which sound promising.
The price action has been under pressure over the last couple of months with the downtrend still intact (grey dotted line). We might see more down side to the $96.75 per share support level in the short term as fundamental factors playout.
We would need to see the price action at current levels close above the $104.70 per share resistance level to negate the downtrend.
Source - Bloomberg
- Portfolio Hold (Current)*
- Portfolio Buy opportunity: close above $104.70 per share**.
- WhatsTheBeef long term target price: $108.57 per share.
Know your company:Tractor Supply Company (TSCO)
- The Tractor Supply Company do not sell tractors and they lay claim to be the inventors of the do-it-yourself trend.
- They have recently launched an online Autoship program and Promotional codes and coupons are accepted whether you shop online or in-store.
- They are the creators and owners of the Petsense pet supply stores as the company is an advocate of finding homes for dogs, cats, and other pets.
- The company consistently supports the role of women in the workplace.
*Portfolio Hold (Current) refers to investors who already hold the stock within their portfolio.
**Portfolio Buy opportunity refers to Technical level crossed which might imply that the markets behaviour would support the outlook and Close above refers to a share price close above a Technical Resistance level.
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Barry is a market analyst with GT247.com, with a wealth of experience in the investment markets. Now in his tenth year in the markets, Barry "The Beef" Dumas brings a combination of technical analysis and fundamental insights to the table.