Why Home Depot Can Beat Tractor Supply and HD Supply

Why Home Depot Can Beat Tractor Supply and HD Supply

Why Home Depot Can Beat Tractor Supply and HD Supply

Over the last one month and over the past three months, Tractor Supply Company shares lost -1.59% and -11.26%, respectively. Hedge funds and other institutional investors own 91.99% of the company's stock. Sumitomo Mitsui Asset Management Company LTD raised its stake in shares of Tractor Supply by 1.8% in the second quarter. The stock's 50-day moving average is $86.98 and its 200-day moving average is $90.15.

There are now 133,664,000 shares in issue with a current share value of 70.6 giving Tractor Supply Company a market capitalisation of 9.44B Dollars. The heightened volatility saw the trading volume jump to 7,37,253 shares. The company has a market cap of $9.34 billion.

On the company's financial health, Tractor Supply Company reported $1.16 EPS for the quarter, based on the information available during the earnings call on Jul 20, 2016. The firm noted that the weak quarterly results show a lack of visibility around the near-term demand drivers and the growth in earnings per share (EPS). Analysts polled by Thomson Reuters expected per-share profit of 72 cents and revenue of $1.61 billion. The business's revenue for the quarter was up 4.5% on a year-over-year basis. Now for the full year, Tractor Supply expects sales to clock in at range of between $6.7 billion and $6.75 billion, down from prior estimates of $6.8 billion to $6.9 billion. Its numbers were such a shock that at least five analysts downgraded Tractor Supply, giving a sense of just how much of a surprise it really was.

Tractor Supply Company using SYMBOL/TICKER code NASDAQ:TSCO had its stock rating noted as "Reiterated" with the recommendation being set at "BUY" yesterday by analysts at UBS. On one hand, the home-improvement market that Home Depot primarily serves does not have substantial overlap with Tractor Supply's roughly 15,000 US stores mainly focused on meeting the demands of recreational farmers and ranchers, primarily in rural areas. It operates retail farm and ranch stores and focuses on supplying the lifestyle needs of recreational farmers and ranchers, as well as tradesmen and small businesses. While the Company's sales are not directly dependent on the production farming industry, the third consecutive year of declining farm income appears to be having a broader effect in many of its rural farming communities. Its product categories include livestock and pet, hardware, tools, truck and towing, clothing and footwear, agriculture and seasonal, gift and toy products. Its products are offered under various brands which include 4health Blue Mountain Countyline Equistages Groundwork Huskee JobSmart Dumor C.E. Schmidt Paws & Claws Producer's Pride and Redstone among others.

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