Trade-Ideas LLC identified

Tractor Supply

(

TSCO

) as a strong and under the radar 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 $86.9 million.
  • TSCO has traded 849.642000000000052750692702829837799072265625 options contracts today.
  • TSCO is making at least a new 3-day high.
  • TSCO has a PE ratio of 3.
  • TSCO is mentioned 1.87 times per day on StockTwits.
  • TSCO has not yet been mentioned on StockTwits today.
  • TSCO is currently in the upper 20% of its 1-year range.
  • TSCO is in the upper 35% of its 20-day range.
  • TSCO is in the upper 45% of its 5-day range.
  • TSCO is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on TSCO:

Tractor Supply Company operates rural lifestyle retail stores in the United States. The stock currently has a dividend yield of 1.1%. TSCO has a PE ratio of 3. Currently there are 16 analysts that rate Tractor Supply a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Tractor Supply has been 961,100 shares per day over the past 30 days. Tractor Supply has a market cap of $12.2 billion and is part of the services sector and specialty retail industry. The stock has a beta of 1.08 and a short float of 5.4% with 7.01 days to cover. Shares are up 8.7% year-to-date as of the close of trading on Monday.

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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 revenue growth, growth in earnings per share, increase in net income, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 6.8%. Since the same quarter one year prior, revenues rose by 10.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • TRACTOR SUPPLY CO has improved earnings per share by 19.0% 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 $3.00 versus $2.66 in the prior year. This year, the market expects an improvement in earnings ($3.49 versus $3.00).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Specialty Retail industry average. The net income increased by 16.6% when compared to the same quarter one year prior, going from $58.04 million to $67.67 million.
  • Net operating cash flow has significantly increased by 72.26% to $62.55 million when compared to the same quarter last year. In addition, TRACTOR SUPPLY CO has also vastly surpassed the industry average cash flow growth rate of -1.85%.
  • TSCO's debt-to-equity ratio is very low at 0.20 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 0.09 is very weak and demonstrates a lack of ability to pay short-term obligations.

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