2. Tractor Supply
Tractor Supply (TSCO) operates 1,276 stores in 48 states in mainly rural areas so if you haven’t heard of it, you probably live in a big city. It serves recreational farmers and ranchers as well as tradesmen and small businesses.
On Jan 28, Tractor Supply did it again, beating the Zacks Consensus Estimate by 4.6%. It hasn’t missed the estimate in 5 years.
So why are shares down big in the last month?
Tractor Supply guided 2014 slightly under the consensus which sent investors scurrying. However, several analysts believe that Tractor Supply is just being conservative and that guidance will be raised later in the year.
Otherwise, the Tractor Supply expansion story is still intact.
It’s On Sale
There hasn’t been a big pullback in Tractor Supply’s shares in 5 years. This is the first opportunity to get in at a lower level in a long time. The forward P/E has dropped as the stock has slid.
- Forward P/E = 24
- 2014 expected EPS growth: 12.6%
Zacks Rank #3 (Hold)
Shares are down about 15% in the last month. This is your chance. Buy the dip.