TSCO Rolls Out Preliminary Q1 Update, Withdraws Full-Year Forecast

The firm also withdrew its full-year guidance

Deputy Editor
Apr 7, 2020 at 9:54 AM
facebook twitter linkedin

Shares of leading rural lifestyle retailer Tractor Supply Company (NASDAQ:TSCO) are down 1.1% at $87 this morning, as traders take a moment to digest the company's preliminary first-quarter update. TSCO posted $1.96 billion in sales, which exceeded analysts' estimates, and said its same-store sales for March were 12% above the prior year. The company said it benefited from consumers stocking up on core everyday merchandise in response to the COVID-19 outbreak. The firm also decided to withdraw its fiscal 2020 guidance. 

In recent weeks, TSCO has found support at its 20-day moving average, which has helped guide the equity off its March 17, two-year bottom near the $65 level. Now, the stock is pushing back up against pressure at its $88- $87 region, which has kept a lid on the shares since their early March bear gap. 

Analysts have remained optimistic for the most part. Of the 18 in coverage, 13 call Tractor Supply Company a "buy" or better, while the remaining five say "hold." The consensus 12-month target price of $97.63 is a healthy 11% premium to current levels. 

The options pits have been singing a different tune. TSCO sports a 10-day put/call volume ratio of 2.83 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits higher than 86% of all other readings from the past 12 months, suggesting long puts are being picked up at a much quicker-than-usual clip. 



Begin the New Year With Schaeffer's 7 FREE 2022 Stock Picks!



Special Offers from Schaeffer's Trading Partners