Tractor Supply (TSCO): Today's Featured Specialty Retail Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Tractor Supply ( TSCO) pushed the Specialty Retail industry lower today making it today's featured Specialty Retail laggard. The industry as a whole closed the day down 0.1%. By the end of trading, Tractor Supply fell $2.28 (-2.4%) to $92.88 on heavy volume. Throughout the day, 1.7 million shares of Tractor Supply exchanged hands as compared to its average daily volume of 549,700 shares. The stock ranged in price between $90.10-$95.38 after having opened the day at $95.01 as compared to the previous trading day's close of $95.16. Other companies within the Specialty Retail industry that declined today were: Build-A-Bear Workshop ( BBW), down 22.3%, Cabela's ( CAB), down 16.4%, Lithia Motors ( LAD), down 7.4%, and Mecox Lane ( MCOX), down 6.7%.
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Tractor Supply Company operates retail farm and ranch stores in the United States. Tractor Supply has a market cap of $6.75 billion and is part of the services sector. The company has a P/E ratio of 26.9, equal to the average specialty retail industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 35.7% year to date as of the close of trading on Wednesday. Currently there are 14 analysts that rate Tractor Supply a buy, no analysts rate it a sell, and seven rate it a hold.

TheStreet 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, compelling growth in net income, revenue growth, notable return on equity and good cash flow from operations. 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.

On the positive front, Birks & Mayors ( BMJ), up 18.3%, West Marine ( WMAR), up 11.1%, MarineMax ( HZO), up 5.1%, and Titan Machinery ( TITN), up 4%, were all gainers within the specialty retail industry with Staples ( SPLS) being today's featured specialty retail industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the specialty retail industry could consider SPDR S&P Retail ETF ( XRT) while those bearish on the specialty retail industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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