2-Star Stocks Poised to Plunge: Tractor Supply?

Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, farm and ranch store operator Tractor Supply Company (Nasdaq: TSCO  ) has received a distressing two-star ranking.

With that in mind, let's take a closer look at Tractor Supply's business and see what CAPS investors are saying about the stock right now.

Tractor Supply facts

Headquarters (Founded)

Brentwood, Tenn. (1983)

Market Cap

$1.94 billion


Specialty retail

Trailing-12-Month Revenue

$3.13 billion


CEO James Wright (since 2007)
CFO Anthony Crudele (since 2005)

Revenue and Net Income Growth (Over Past Year)

10.7% and 7.9%

Price-to-Cash Flow (TSCO and S&P 500)

15.1 and 6.7

Year-to-Date Return



Home Depot (NYSE: HD  )
Lowe's (NYSE: LOW  )

CAPS Members Bearish on TSCO Also Bearish on (Nasdaq: AMZN  ) (Nasdaq: BIDU  )

CAPS Members Bullish on TSCO Also Bullish on

Apple (Nasdaq: AAPL  )
Johnson & Johnson (NYSE: JNJ  )

Sources: Capital IQ (a division of Standard & Poor's), Morningstar, and Motley Fool CAPS.

On CAPS, 14.1% of the 234 members who have rated Tractor Supply believe the stock will underperform the S&P 500 going forward. These bears include tenmiles, the seventh ranked member in all of CAPS, and tortillatree.

Just last week, tenmiles tapped the stock as a good way to lose some hay: "[S]tarting to look gassy; fundamentals are good, but not spectacular, as most of recent upside driven by cost controls, not organic sales growth -- pushing 20x earnings."

In a pitch from last month, tortillatree also urged Fools not to bet the farm on Tractor Supply's expansion plans:

[T]hey're a strong company and have no debt, but they're growing too fast, opening stores in poor locations, opening stores too close to existing stores, cutting hours to the point that they can't keep their stores clean/organized, and stretching themselves too thin all around. my money says their current investments are going to lose money for them, and a year or so from now they're going to have to admit it, close some stores, spend money advertising to try to earn their customers back ... and get back to their basics.

What do you think about Tractor Supply, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!  

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Home Depot and Lowe's are Motley Fool Inside Value picks. Amazon and Apple are selections of Stock Advisor. Baidu is a recommendation of Rule Breakers, and Johnson & Johnson is a choice of Income Investor. The Fool's disclosure policy always gets a perfect score.

Read/Post Comments (0) | Recommend This Article (8)

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.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

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: 1005590, ~/Articles/ArticleHandler.aspx, 10/20/2016 8:35:04 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...

Today's Market

updated Moments ago Sponsored by:
DOW 18,162.35 -40.27 -0.22%
S&P 500 2,141.34 -2.95 -0.14%
NASD 5,241.83 -4.58 -0.09%

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

10/20/2016 4:00 PM
TSCO $64.99 Down -2.38 -3.53%
Tractor Supply CAPS Rating: ****
AAPL $117.06 Down -0.06 -0.05%
Apple CAPS Rating: ****
AMZN $810.32 Down -7.37 -0.90% CAPS Rating: ****
BIDU $175.17 Down -1.03 -0.58%
Baidu CAPS Rating: *****
HD $126.25 Up +0.36 +0.29%
Home Depot CAPS Rating: ****
JNJ $114.87 Up +0.28 +0.24%
Johnson and Johnso… CAPS Rating: ****
LOW $69.89 Up +0.30 +0.43%
Lowe's CAPS Rating: ****