Added to YB: 2026-08-06
Pitch date: 2026-08-06
TSCO [bullish]
Tractor Supply Company
+3.03%
current return
Author Info
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Company Info
Tractor Supply Company operates as a rural lifestyle retailer in the United States. The company provides various merchandise, including livestock and equine feed and equipment, poultry, fencing, and sprayers and chemicals; companion animal products, such as food, treats, and equipment for dogs, cats, and other small animals, as well as dog wellness products; seasonal and recreation products comprising tractors and riders, lawn and garden, bird feeding, power equipment, and other recreational products; truck, tool, and hardware products, such as truck accessories, trailers, generators, lubricants, batteries, and hardware and tools; and clothing, gift, and décor products consist of clothing, footwear, toys, snacks, and decorative merchandise.
Market Cap
$18.3B
Pitch Price
$33.95
Price Target
N/A
Dividend
2.74%
EV/EBITDA
9.32
P/E
18.26
EV/Sales
1.56
Sector
Specialty Retail
Category
turnaround
Cluster buy at retailer undergoing turnaround
TSCO: Trough-earnings turnaround thesis: down 46% on pet weakness (over-indexed to declining large-dog population, Petsense drag—75 stores closing, $66mm charge), post-COVID de-rating and a soft consumer. Trades 12.3x EV/EBITDA NTM vs 15.8x 5y median, but bull case rests on this being the earnings floor. Signs of life: pet comps improving sequentially, SG&A cuts, Freshpet expansion 250→700 stores. Caveats: won't re-rate to prior growth multiple, mgmt scrapped 3-5% comp target and guides flat FY26 comps at best (needs 2% comps to leverage fixed costs); macro is the key risk. Author upgraded to High Signal List on fresh insider buying.
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