Brentwood, Tennessee-based Tractor Supply Company (TSCO) is the largest operator of rural lifestyle retail stores in America. With a market cap of $31.7 billion, Tractor Supply focuses on the lifestyle needs of recreational farmers, ranchers, tradesmen, small businesses, and others who enjoy the rural lifestyle. The specialty retailer is expected to release its Q3 earnings before the market opens on Thursday, Oct. 24.

Ahead of the event, analysts expect Tractor Supply to report a profit of  $2.22 per share, down 4.7% from $2.33 per share reported in the year-ago quarter. The company has surpassed Wall Street’s EPS projections thrice over the past three quarters while missing on one other occasion. Its adjusted EPS for the last reported quarter grew 2.6% year-over-year to $3.93, marginally missing the consensus estimates.

For fiscal 2024, analysts expect Tractor Supply to report an EPS of $10.23, up 1.4% from $10.09 in fiscal 2023. In fiscal 2025, its EPS is expected to grow 8.4% year-over-year to $11.09.

TSCO has gained 41.2% on a YTD basis, substantially outperforming the S&P 500 Index’s ($SPX) 20.6% gains and the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 10.2% returns during the same time frame.

Shares of Tractor Supply dipped 1.9% after its Q2 earnings release on July 25. The company reported 1.5% year-over-year net sales growth to $4.2 billion, which fell short of Wall Street’s expectations. This was primarily due to a decline in comparable store sales during the quarter. Additionally, a slight decrease in net margins resulted in a softer improvement in net income, totaling $425.2 million, which also missed analysts’ estimates.

However, the dip in comparable store sales was mitigated by 21 new stores opening during the quarter. After the initial drop in share prices, TSCO rebounded by 2% in the subsequent trading session.

The consensus opinion on TSCO stock is moderately bullish, with an overall “Moderate Buy” rating. Out of the 29 analysts covering the stock, 13 recommend a “Strong Buy,” one advises a “Moderate Buy,” 13 suggest a “Hold,” one advocates a “Moderate Sell,” and one gives a “Strong Sell” rating.

While TSCO is trading above its mean price target of $275.63, the Street-high target of $315 represents a potential upside of 3.7% from current price levels.

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On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.