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 was unchanged today. By the end of trading, Tractor Supply fell $2.33 (-2.1%) to $110.21 on heavy volume. Throughout the day, 1,225,547 shares of Tractor Supply exchanged hands as compared to its average daily volume of 540,600 shares. The stock ranged in price between $108.45-$113.75 after having opened the day at $112.67 as compared to the previous trading day's close of $112.54. Other companies within the Specialty Retail industry that declined today were: Sport Chalet ( SPCHA), down 14.1%, Big 5 Sporting Goods Corporation ( BGFV), down 5.4%, Penske Automotive Group ( PAG), down 4.3% and West Marine ( WMAR), down 4.2%.
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Tractor Supply Company operates retail farm and ranch stores in the United States. Tractor Supply has a market cap of $8.1 billion and is part of the services sector. The company has a P/E ratio of 30.0, above the S&P 500 P/E ratio of 17.7. Shares are up 27.4% year to date as of the close of trading on Thursday. Currently there are 18 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, 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.

On the positive front, Hollywood Media Corporation ( HOLL), down 10.8%, Hastings Entertainment ( HAST), down 8.3%, Lentuo International ( LAS), down 5.9% and Books-A-Million ( BAMM), down 5.8% , were all gainers within the specialty retail industry with Coinstar ( CSTR) 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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