TSCO) related to other specialty retail stocks

TSCO cover photo — Q3 Results Summary: Tractor Supply (NASDAQ:TSCO) in the Context of Other Specialty Retail Stocks

Quarterly earnings results are a good time to review a company’s progress, especially compared to its competitors in the same sector. Today we’re taking a look at Tractor Supply (NASDAQ:TSCO) and the best and worst companies in specialty retail.

Some retailers try to sell everything there is, while others – appropriately called specialty retailers – focus on selling a narrow category and aim to be exceptional within it. Whether it’s eyewear, sporting goods, or beauty and cosmetics, these stores excel with product depth in their category, as well as in-store expertise and advice for shoppers who need it. There is competition in e-commerce and declining retail footfall is impacting these retailers. However, the extent of the headwind depends on what they sell and the value they provide in their stores.

The four specialty retail stocks we track had mixed results in the third quarter. Overall, sales were in line with analysts’ consensus estimates, while the next quarter’s sales forecast was 2.5% below.

Amid this news, company stock prices experienced a difficult phase. On average, they are down 11.6% since the last earnings results.

Founded as a mail-order tractor parts distributor, Tractor Supply (NASDAQ:TSCO) is a retailer of general goods such as agricultural supplies, hardware and pet food to rural consumers.

Tractor Supply reported revenue of $3.47 billion, up 1.6% from a year earlier. This figure was in line with analyst expectations, but overall it was a mixed quarter for the company, with EBITDA in line with analyst estimates.

“We delivered on our third quarter expectations in a tepid retail environment while advancing our Life Out Here strategy. The fundamentals of our business remain strong and we continue to gain market share. With almost 50% of our stores in the Project Fusion layout and more than 550 garden centers, we continue to invest in our stores, supply chain and capabilities that strengthen customer loyalty and raise the standards of our industry. “My thanks and appreciation go to the entire Tractor Supply team for their dedication and commitment to serving Life Out Here, especially during this challenging hurricane season,” said Hal Lawton, President and Chief Executive Officer of Tractor Supply.

Tractor Supply achieved the highest full-year guidance increase across the group. Still, the market seems dissatisfied with the results. The stock has fallen 6.6% since reporting and is currently trading at $285.94.

Is now the time to buy Tractor Supply? You can access our full earnings results analysis for free here.

National Vision (NYSE:EYE) operates under multiple brands and sells optical products such as eyeglasses and provides optical services such as eye exams.

National Vision reported revenue of $451.5 million, up 2.9% year-over-year and in line with analyst expectations. The company had a very strong quarter, significantly exceeding analysts’ EPS and EBITDA estimates.

National Vision's total sales — National Vision’s total sales

National Vision posted the fastest revenue growth among its peers. Although the company had a good quarter compared to its peers, the market appears to be unhappy with the results as the stock has fallen 6.6% since reporting. The price is currently $11.41.

Is now the time to buy National Vision? You can access our full earnings results analysis for free here.

Named after founder Philip Leslie, who founded the company in 1963, Leslie’s (NASDAQ:LESL) is a retailer that sells pool and spa supplies, equipment and maintenance services.

Leslie’s reported revenue of $397.9 million, down 8% from a year earlier and 1.8% short of analysts’ expectations. It was a disappointing quarter as analysts’ EBITDA and gross margin estimates were missed significantly.

Leslie’s delivered the weakest performance and slowest revenue growth in the group compared to analyst estimates. As expected, the stock has fallen 29.3% since the results and is currently trading at $2.49.

Read our full analysis of Leslie’s findings here.

Always known for its window displays of pets for sale or adoption, Petco (NASDAQ:WOOF) is a specialty retailer of pet food and supplies, as well as a provider of services such as wellness checks and grooming.

Petco reported sales of $1.51 billion, up 1.2% from a year earlier. This figure beat analysts’ expectations by 0.7%. Aside from that, it was a mixed quarter as it also impressively beat analysts’ EPS estimates, but the EBITDA forecast for the next quarter fell short of analysts’ expectations.

Petco beat major analyst estimates compared to its peers. The stock has fallen 8.4% since reporting and is currently trading at $4.49.

Read our full, actionable report on Petco for free here.

The Fed’s rate hikes in 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without plunging the economy into recession, suggesting a soft landing. This stability, coupled with recent interest rate cuts (0.5% in September 2024 and 0.25% in November 2024), has given the stock market a strong year in 2024. Markets continued to rise following Donald Trump’s presidential victory in November, with major indexes hitting record highs in the days following the election. Still, questions remain about the direction of economic policy, with possible changes to tariffs and corporate taxes by 2025 adding further uncertainty.

Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem stocks and add them to your watchlist. These companies are focused on growth regardless of the political or macroeconomic climate.

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TSCO) related to other specialty retail stocks

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