The Case for and Against Tractor Supply Company (TSCO)

Tractor Supply Company (TSCO) is an interesting player in the Services space, with a focus on Specialty Retail, Other. The stock has been active on the tape, currently trading at $64.86, down from yesterday’s close by -1.52%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Tractor Supply Company (TSCO) currently trades with a market capitalization of $8.14 Billion. That value represents a market adjusting for revenues that have been growing by 1.89 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $381.05 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $0.59 on a per share basis this quarter. Perhaps, that suggests something about why 3.77% of the outstanding share supply is held by institutional investors.

Technical Analysis

It’s important to check the technicals to get a sense of how TSCO has been acting. Looking at the stock’s movement on the chart, Tractor Supply Company recorded a 52-week high of $82.68. It is now trading 17.82% off that level. The stock is trading $73.32 its 50-day moving average by 8.46%. The stock carved out a 52-week low down at $49.87.

In recent action, Tractor Supply Company (TSCO) has made a move of -18.00% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 16.23, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 4.28% with $123.84 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of TSCO.

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