Trade-Ideas: Tractor Supply (TSCO) Is Today's New Lifetime High Stock
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.Trade-Ideas LLC identified Tractor Supply (TSCO) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Tractor Supply as such a stock due to the following factors:
- TSCO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $53.6 million.
- TSCO has traded 837,718 shares today.
- TSCO is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in TSCO with the Ticky from Trade-Ideas. See the FREE profile for TSCO NOW at Trade-IdeasMore details on TSCO: Tractor Supply Company operates retail farm and ranch stores in the United States. The stock currently has a dividend yield of 0.8%. TSCO has a PE ratio of 31.2. Currently there are 16 analysts that rate Tractor Supply a buy, no analysts rate it a sell, and 6 rate it a hold.The average volume for Tractor Supply has been 414,400 shares per day over the past 30 days. Tractor Supply has a market cap of $9.1 billion and is part of the services sector and specialty retail industry. The stock has a beta of 0.96 and a short float of 3.5% with 6.11 days to cover. Shares are up 47.1% year to date as of the close of trading on Friday.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.TheStreetRatings.com Analysis:TheStreet Quant Ratings rates Tractor Supply as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, revenue growth, notable return on equity, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.Highlights from the ratings report include:
- TRACTOR SUPPLY CO has improved earnings per share by 20.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, TRACTOR SUPPLY CO increased its bottom line by earning $3.80 versus $3.01 in the prior year. This year, the market expects an improvement in earnings ($4.48 versus $3.80).
- Despite its growing revenue, the company underperformed as compared with the industry average of 19.7%. Since the same quarter one year prior, revenues rose by 12.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Specialty Retail industry and the overall market, TRACTOR SUPPLY CO's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
- TSCO's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.10 is very weak and demonstrates a lack of ability to pay short-term obligations.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Specialty Retail industry average. The net income increased by 15.9% when compared to the same quarter one year prior, going from $106.62 million to $123.58 million.
- You can view the full Tractor Supply Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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