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 0.7%. By the end of trading, Tractor Supply fell $2.34 (-2.1%) to $108.50 on average volume. Throughout the day, 693,234 shares of Tractor Supply exchanged hands as compared to its average daily volume of 702,600 shares. The stock ranged in price between $108.24-$111.28 after having opened the day at $111.06 as compared to the previous trading day's close of $110.84. Other companies within the Specialty Retail industry that declined today were: Sport Chalet ( SPCHB), down 10.3%, MarineMax ( HZO), down 5.3%, Hastings Entertainment ( HAST), down 2.9% and Trans World Entertainment ( TWMC), down 2.8%.
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Tractor Supply Company operates retail farm and ranch stores in the United States. Tractor Supply has a market cap of $7.8 billion and is part of the services sector. The company has a P/E ratio of 29.0, above the S&P 500 P/E ratio of 17.7. Shares are up 25.4% year to date as of the close of trading on Thursday.

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, revenue growth, notable return on equity, good cash flow from operations and increase in stock price during the past year. 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, Lentuo International ( LAS), down 6.5%, 1-800 Flowers.com ( FLWS), down 3.2% and Bluefly ( BFLY), down 2.2%.

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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