With more than 1,000 stores spread across 44-states, Tractor Supply (TSCO - Get Report) has been one of the biggest growth stories in retail lately. In the last two years alone, Tractor Supply has seen its top line grow 31% (a cool $1 billion increase) while at the same time ratcheting its net profit margins higher each quarter.
With profitability that far and away exceeds the numbers that other similar retailers are seeing, TSCO shouldn't be ignored by investors in 2012.The Brentwood, Tennessee-based firm sells a whole lot more than its name suggests. Products include everything from clothing to home and garden products, to pet care items (yes, the company sells tractors too). But its unique positioning attracts curious shoppers and its unique product merchandising (TSCO stocks many exclusive and private-label offerings) keeps them coming back. The firm's geographic focus has been just as important. TSCO builds its locations in rural communities outlying major metropolitan areas, positioning that offers enough consumer concentration to support a store with the demographics that will want the products Tractor Supply sells. With a deep net cash position on its balance sheet and a price multiple that's only slightly high, I think TSCO is one of the most attractive names in retail right now. So, with rising analyst sentiment in shares, we're betting on this Rocket Stock this week. To see all of this week's Rocket Stocks in action, check out the Rocket Stocks portfolio at Stockpickr. -- Written by Jonas Elmerraji in Baltimore.
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