„Tractor Supply stock sets its sights on highs“

Last Updated: 7. Februar 2024By

These days, the earnings season is in full swing. Recently, the focus has been on technology heavyweights, which were able to impress with their numbers.

But many other companies have also opened their books. For example, Tractor Supply. I assume that only few of you are familiar with the company. That’s why I would like to introduce the US company to you.

Tractor Supply: Retailer for agricultural products The company from Brentwood, Tennessee, was founded in 1938. Tractor Supply specializes in products for agriculture, animal husbandry, gardening, and DIY. The company operates over 2,000 stores in 49 states under the names „Tractor Supply,“ „Orscheln Farm and Home,“ and „Petsense.“

The product range includes, for example, work and outdoor clothing, electric fences, gates and automatic gate openers, equipment and accessories for field cultivation, products for livestock farming, as well as for horse breeding and care, greenhouses, lawn mowers, feed and pet supplies, and power tools.

Confirmation of annual forecast The group has been steadily growing for many years. Within a decade, revenue has almost tripled, representing an average growth of 11% per year. Profits have more than tripled in the same period, increasing by an average of 13% per year.

In the fourth quarter of 2023, the group was able to exceed expectations, but also suffered slight losses. However, for the full year, Tractor Supply achieved new records in both revenue and profit. Revenues rose by almost 3% to $14.56 billion. The company earned $1.11 billion, 2% more than in the previous year.

For the current year 2024, management expects revenue to increase by up to 4% to $14.7 to $15.1 billion. Comparable sales are expected to increase by 1.0 to 1.5%. Profit is expected to grow by more than 3% to $9.85 to $10.50 per share.

Source: www.aktienscreener.com

Stock takes aim at its highs The stock of Tractor Supply is moving in a long-term uptrend but has been consolidating for some time now. At the end of 2021 and the beginning of 2022, the price repeatedly turned down in the $240 range. Last year, a new attempt to break through this massive technical resistance zone failed.

Now the stock could soon make a new attempt. If the breakout succeeds, it would be a strong trend signal. In this case, mid-term prices above the round $300 mark are a realistic target.

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