#5 - Tractor Supply (NASDAQ:TSCO)
Tractor Supply Co. (NASDAQ: TSCO) is a retail stock that is set up to outperform the sector heading into 2025. TSCO stock has pulled back from an all-time high after a mixed earnings report in which the company issued cautious guidance for coming quarters.
And earnings may be affected by Tractor Supply’s planned all-cash acquisition of the online pet pharmacy, Allivet. Tractor Supply already generates about 25% of its revenue from pet supplies, so this acquisition aligns with the company’s existing business model. The acquisition is expected to add $15 million to Tractor Supply’s 2025 top line. That would almost double the company’s projected full-year revenue for 2014.
The deal is expected to close in the first quarter of 2025. However, this looks like an ideal opportunity for investors to buy the dip. That was true even before the outcome of the presidential election became clear. If the economy begins to grow as expected, analysts are likely to look past the company’s somewhat lofty valuation.
About Tractor Supply
Tractor Supply Company operates as a rural lifestyle retailer in the United States. The company offers various merchandise, including livestock and equine feed and equipment, poultry, fencing, and sprayers and chemicals; food, treats, and equipment for dogs, cats, and other small animals, as well as dog wellness products; seasonal and recreation products comprising tractors and riders, lawn and garden, bird feeding, power equipment, and other recreational products; truck, tool, and hardware products, such as truck accessories, trailers, generators, lubricants, batteries, and hardware and tools; and clothing, gift, and décor products consist of clothing, footwear, toys, snacks, and decorative merchandise.
Read More - Current Price
- $288.95
- Consensus Rating
- Hold
- Ratings Breakdown
- 12 Buy Ratings, 9 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $282.82 (2.1% Downside)
