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

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 higher today making it today's featured specialty retail winner. The industry as a whole closed the day up 0.2%. By the end of trading, Tractor Supply rose $1.60 (1.4%) to $113.23 on light volume. Throughout the day, 398,508 shares of Tractor Supply exchanged hands as compared to its average daily volume of 635,800 shares. The stock ranged in a price between $111.74-$113.95 after having opened the day at $111.74 as compared to the previous trading day's close of $111.63. Other companies within the Specialty Retail industry that increased today were: Zale Corporation ( ZLC), up 4.9%, Dover Saddlery ( DOVR), up 4.0%, Brown Shoe Company ( BWS), up 3.8% and Netflix ( NFLX), up 3.4%.
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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 28.9, above the S&P 500 P/E ratio of 17.7. Shares are up 26.7% year to date as of the close of trading on Wednesday. Currently there are 17 analysts that rate Tractor Supply a buy, no analysts rate it a sell, and 6 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 growth in earnings per share, revenue growth, notable return on equity, largely solid financial position with reasonable debt levels by most measures and increase in net income. 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 negative front, DGSE Companies ( DGSE), down 4.6%, Sonic Automotive ( SAH), down 2.7%, Rush ( RUSHA), down 2.6% and Rush ( RUSHB), down 2.6% , were all laggards within the specialty retail industry with Sally Beauty Holdings ( SBH) being today's specialty retail industry laggard.

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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