Why Tractor Supply’s Shares Jumped

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Tractor Supply (NASDAQ: TSCO  ) jumped 10% today, after the company released earnings.

So what: Sales rose 3.7%, to $1.29 billion, in the quarter, coming in just ahead of estimates. But earnings jumped 15.6%, to $1.11 per share, which was well ahead of the $1.03 estimate, giving a jolt to the stock.  

Now what: Management expects continued growth of $5.07 to $5.17 billion in revenue next year, and earnings of $4.32 to $4.40 per share. The continued strong operations are good for the company, but I'm a little worried about paying up for the stock. Shares closed at $103.67 today, indicating a 23.6 forward P/E ratio at the high end of estimates, a steep price even with good growth. I'll stay away for now, and wait for a better value in the stock.

Interested in more info on Tractor Supply? Add it to your watchlist by clicking here.

Read/Post Comments (1) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On February 01, 2013, at 2:52 PM, dcrednek wrote:

    TSCO is a solid company with a long, bright future. But I agree that P/E over 20 is a bit steep to pay given the historic multiple and the unstable macro climate.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2229224, ~/Articles/ArticleHandler.aspx, 10/8/2015 5:59:15 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Travis Hoium

Travis Hoium has been writing for since July 2010 and covers the solar industry, renewable energy, and gaming stocks among other things.

Today's Market

updated Moments ago Sponsored by:
DOW 17,050.75 138.46 0.82%
S&P 500 2,013.43 17.60 0.88%
NASD 4,810.79 19.64 0.41%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/8/2015 3:59 PM
TSCO $89.20 Up +0.59 +0.67%
Tractor Supply Com… CAPS Rating: ****