Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. Trade-Ideas LLC identified Tractor Supply ( TSCO) as a post-market leader 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 $98.1 million.
- TSCO is up 2.2% today from today's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in TSCO with the Ticky from Trade-Ideas. See the FREE profile for TSCO NOW at Trade-Ideas More details on TSCO: Tractor Supply Company operates retail farm and ranch stores in the United States. The stock currently has a dividend yield of 0.8%. TSCO has a PE ratio of 28.3. Currently there are 14 analysts that rate Tractor Supply a buy, no analysts rate it a sell, and 8 rate it a hold. The average volume for Tractor Supply has been 1.7 million shares per day over the past 30 days. Tractor Supply has a market cap of $9.2 billion and is part of the services sector and specialty retail industry. The stock has a beta of 0.99 and a short float of 2.3% with 2.21 days to cover. Shares are down 15.3% year-to-date as of the close of trading on Friday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. 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, impressive record of earnings per share growth, good cash flow from operations, solid stock price performance and compelling growth 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. Highlights from the ratings report include:
- TSCO's revenue growth has slightly outpaced the industry average of 6.8%. Since the same quarter one year prior, revenues rose by 10.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- TRACTOR SUPPLY CO has improved earnings per share by 22.5% 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 $2.33 versus $1.90 in the prior year. This year, the market expects an improvement in earnings ($2.62 versus $2.33).
- Net operating cash flow has slightly increased to $235.07 million or 5.66% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -5.18%.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Specialty Retail industry average. The net income increased by 20.6% when compared to the same quarter one year prior, going from $79.49 million to $95.88 million.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 28.38% over the past year, a rise that has exceeded that of the S&P 500 Index. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- You can view the full Tractor Supply Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.