Opinions
Jim Cramer - Mad Money
Tractor Supply
TSCO-Q
BUY
Nov 05, 2021
Stock price when the opinion was issued
You might be interested:
(A Top Pick Nov 09/22, Up 10%)
They target hobby farmers who need lawnmowers, snow blowers, livestock feed, etc. Their customers have higher than usual disposable incomes and live outside cities, so their living expenses are lower. Also, they live in remote areas away from Costcos and other shops. TSCO has 2,000 stores in the US and keep opening a hundred or so annually. They keep growing same-store sales, though the rate has been declining lately. Offers good historic growth. Continues to like this.
Their last quarter wasn't good, missing across the board and slashing their full-year forecast, down to 1.3-2.5% growth. Analysts then cut their targets and lowered their signals. He targets 22x 2024 PE or $246 or a 21% gain. You can buy a tranche this now. It's a reliable retail name. Short-term is unpredictable, but long term it's solid.
It's been a long-term hold, doing amazing over 25 years. Don't buy it here, because the farm economy is slowing and TSCO is selling around 25x PE and the forecast growth rate is 3-4% which is a little high for a stock like this. Don't panic and sell this, but hold if you own. Buy if this falls 10-15%.