It's been a great year for Tractor Supply (TSCO). Shares of the $6.6 billion retail chain have rallied close to 18% in the last 12 months, besting any performance the S&P 500 could turn out over that same period. Tractor Supply is a big name in niche retail, offering up everything from clothing to home and garden products, to pet care items in its 1,000 store network.
And yes, the company sells tractors too.Tractor Supply is a niche name because its target market isn't the mainstream consumer. Instead, it caters to more rural consumers who court a country lifestyle. The firm's catch-all inventory would normally looks like a liability, but in TSCO's case, the overly diverse product mix can be forgiven -- it clearly works for the firm's demographic. TSCO's store footprint is still relatively small. The company 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. As more stores get opened, sales numbers should expand considerably. The firm's ability to finance new store builds with cash (rather than a mountain of debt) is commendable too. Home improvement sales continue to move higher in 2013, and they should keep dragging Tractor Supply higher too. To see all of this week's Rocket Stocks in action, check out the Rocket Stocks portfolio at Stockpickr.
Twitter and become a fan on Facebook.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV