Tractor Supply(US:TSCO) The Motley Foolยท2024-12-14 08:12Core Viewpoint - Tractor Supply has experienced significant stock growth, tripling in value over the last five years, and is now planning a 5-for-1 stock split to make shares more accessible to investors [1][2]. Company Overview - Tractor Supply is recognized for its strong long-term stock performance and quality, leading to the decision for a stock split [2]. - The company operates nearly 2,300 locations, making it the largest chain in its niche, primarily serving rural communities [6]. - Over half of Tractor Supply's sales are from non-discretionary items, such as pet and livestock products, ensuring consistent demand even during economic downturns [7]. Financial Performance - Over the past decade, Tractor Supply has grown its revenue through new store openings and increased same-store sales, while also returning profits to shareholders via dividends and share buybacks [8]. - Management projects annual net sales growth of 6% to 8% and EPS growth of 8% to 11% through 2030, indicating potential for strong returns [9]. Growth Initiatives - The company plans to expand into the pet pharmacy business, leveraging its existing presence in the pet market [10]. - Tractor Supply aims to enhance revenue through retail media by selling advertising on its digital platforms, similar to strategies employed by larger retailers [11]. - The growth of private brand sales is also a focus, following successful models from other retailers [11]. Investment Outlook - While the stock split may attract attention, the underlying business fundamentals and management's growth strategy suggest that Tractor Supply could outperform the S&P 500 in the coming years [12].