雅虎香港財經 If You Invested $1000 in Tractor Supply a Decade Ago, This is How Much It'd Be Worth Now
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Tractor Supply (TSCO) ten years ago? It may not have been easy to hold on to TSCO for all that time, but if you did, how much would your investment be worth today?
Tractor Supply's Business In-Depth
With that in mind, let's take a look at Tractor Supply's main business drivers.
Headquartered in Brentwood, TN, Tractor Supply Company is the largest retail farm and ranch store chain in the United States. The company focuses on recreational farmers and ranchers as well as tradesmen and small businesses. It offers a wide array of merchandise such as livestock, pet and animal products, maintenance products for agricultural and rural use, hardware and tools, lawn and garden power equipment, truck and towing products, and work apparel.
Stores of Tractor Supply are primarily located in rural areas and the suburbs of major cities, which have inside selling space of 15,000–20,000 square feet with a similar area of outside space, used to demonstrate agricultural fencing, livestock equipment and horse stalls. Petsense stores have roughly 5,500 square feet of inside selling space. For Tractor Supply retail locations, the company has a standard design for the new built-to-suit locations, including nearly 15,500 square feet of inside selling space.
Tractor Supply’s broad assortment of products is tailored to meet the regional and geographic needs of its markets. Moreover, the retailer’s full line of product offerings is supported by a strong in-stock inventory position with an average of 16,000–19,500 unique products per store.
Apart from selling nationally recognized branded merchandise, the company also markets an increasing list of products under its “private-label programs.” The latter include Masterhand and Job Smart (tools and tool chests), Dumor and Producers Pride (livestock feed) and Retriever and Paws ‘n Claws (pet foods). Further, the company recently acquired 100% stake in Petsense, to fortify its presence in the pet specialty space.
Tractor Supply operates retail stores under the names Tractor Supply Company, Del’s Feed & Farm Supply, and Petsense as well as operate websites under the names TractorSupply.com and Petsense.com. Its online selling websites are expected to offer expanded assortment of products beyond in-store as well as boost store traffic through buy online, pickup in-store and ship to store programs.
As of Mar 30, 2024, the company operated 2,233 Tractor Supply stores across 49 states. It also operated 202 Petsense stores in 23 states as of Mar 30, 2024.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Tractor Supply ten years ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in May 2014 would be worth $4,476.18, or a gain of 347.62%, as of May 20, 2024, and this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 182.41% and the price of gold went up 79.53% over the same time frame.
Looking ahead, analysts are expecting more upside for TSCO.
Shares of Tractor Supply have increased and outpaced the industry in the past three months, courtesy of its sturdy demand and strong market share gains. In addition, the buyout of Orscheln Farm and Home, and store openings bode well. The company is benefiting from its Life Out Here Strategy and the Neighbor’s Club membership program. The company's ‘ONETractor’ strategy that is aimed at connecting store and online shopping also appears encouraging. However, Tractor Supply has been witnessing higher SG&A expenses. In 2024, it anticipates gross margin expansion to offset SG&A costs owing to higher investments. In addition, the distribution center network is likely to pressure SG&A costs. For 2024, comps are likely to come between a decline of 1% and growth of 1.5%, versus a 6.3% increase last year.
Shares have gained 13.01% over the past four weeks and there have been 12 higher earnings estimate revisions for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.
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Tractor Supply Company (TSCO) : Free Stock Analysis Report
