The shares of this retailer were recently initiated at Wells Fargo with an ‘Outperform’ rating, and upgraded at Oppenheimer to ‘Outperform’, PiperJaffray to ‘Overweight’, and Goldman Sachs to ‘Buy’.
Tractor Supply (TSCO)
From Hendershot Investments
Tractor Supply (TSCO) reported first quarter revenues rose 8% to $1.7 billion with net income roaring 18% higher to $71.4 million and EPS up 24% to $.57. Comparable store sales grew 3.7% in the quarter despite an unseasonably cool spring and the broad-based growth was across all geographic regions.
During the quarter, the company opened 15 new Tractor Supply stores, including its 1700th location, and four Petsense stores. For the full year, the company plans to open 80 new Tractor Supply stores and 20 Petsense stores.
Tractor Supply recently increased its dividend 15%, marking the 8th consecutive year of dividend hikes. Management expects full year 2018 EPS to increase 20%-26%. During the past three months, Tractor Supply’s stock plowed up a 13% gain. Buy.
Ingrid R. Hendershot, Hendershot Investments, www.hendershotinvestments.com,
703-361-6130, June 2018