Please ensure Javascript is enabled for purposes of website accessibility

Wall Street Races to Raise Tractor Supply’s Price Target Amid Record-Breaking Quarter

By Rich Duprey – May 27, 2020 at 10:25AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

And the quarter isn't even finished yet.

Tractor Supply Company (TSCO -0.28%) expects record-breaking sales and earnings in the second quarter as a result of over 100 initiatives the rural lifestyle retailer implemented to meet the challenges of the COVID-19 pandemic.

Although Tractor Supply won't report earnings until July 23, it says net sales and comparable sales are expected to grow 20% or more for the period.

That's led Wall Street to rush to upgrade the company's stock. No fewer than 11 firms increased their price targets for Tractor Supply, with an average boost of 19%. While the stock currently trades at $111 per share, analysts see it trading anywhere from $110 to $138 per share, an average of $128 per share.

People standing in front of an old tractor

Image source: Tractor Supply Company.

It only gets better from here

Indicative of Wall Street's enthusiastic response to the retailer's report was the note Wells Fargo analyst Zachary Fadem wrote to investors saying, "Holy cow...reason to believe comps could be even better." According to SmarterAnalyst, Fadem believes sales are accelerating, and comps could exceed 30%.

Meeting changing consumer shopping preferences, Tractor Supply continues to invest in digital initiatives, including upgrading its website that will facilitate buy online, pickup in store capabilities and same-day delivery, as well as launching its first mobile app.

President and CEO Hal Lawton said in a statement, "Our outlook for record-breaking sales and earnings in the second quarter demonstrates the potential for Tractor Supply to emerge stronger than before as we continue to gain market share and build our business for the future."

 

Rich Duprey has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Tractor Supply. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Tractor Supply Company Stock Quote
Tractor Supply Company
TSCO
$186.96 (-0.28%) $0.53
Wells Fargo & Company Stock Quote
Wells Fargo & Company
WFC
$40.69 (0.47%) $0.19

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
332%
 
S&P 500 Returns
104%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/30/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.