Another Recommendation

Tractor Supply (TSCO) is today's recommendation. TSCO, which operates retail farms and ranch stores in rural areas of USA, does not look like an ideal stock. But with a closer look, you would notice the vast population of people who own lots of land in these areas and the fact that TSCO does not have any direct competitors. TSCO's targets are actually those who farm as hobbies, and not those full time farmers you see in Thailand on the paddy fields. What it actually sells are smaller-sized equipment, convenient for people to transport it back home. Some examples would be things like lawn mowers, chemicals, other equipment for farming and even clothing, not forgetting the pet care products it sells. TSCO has also recently started to let consumers buy goods online. That means less hassle for the consumers. Many consumers, I believe, want those products but would not go there as it is not in the way and they do not want to travel that extra distance. This can increase its sales. Its numbers are great as well. The first thing I like about this company is the fact that it has no debt at all. Furthermore, Its quarterly sales growth rate is at 22% with a quarterly EPS (Earnings Per Share) growth rate of 124%. ROE is at 25%, good management and it pays a dividend of 0.8%, mediocre but acceptable to me. Its P/E of 30 may not be desirable for you but I read that, before companies like Microsoft (MSFT), Cisco (CSCO) and Xerox (XRX) (and others) rocketed, their average P/E was around 30. So, I will not be avoiding stocks with P/E under 40, but there is always a limit. In the technical aspect, as I write this, shares are down 5% ($5) for today, down to the $93-$94 mark. It has been hovering back and forth between $90 and $100 for a period of time already. I read that it is hard for stocks to break this $100 mark, and when it does, it breaks a psychological barrier and the stock will rise quite drastically.(I know that there are some exceptions,in this, there is no 100% thing). So, I will be loading up on TSCO at this level. This could also be a base for the stock, to rocket up after this. There is still space for growth, with a market cap of 7.2B and keeping in mind it rocketed up from $10 in 2008. I believe that TSCO will continue rising in the future.