Why Tractor Supply (TSCO) is a Top Momentum Stock for the Long-Term

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, Equity Research reports, and Premium stock screens [1] - The Zacks Style Scores serve as complementary indicators to the Zacks Rank, helping investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - Stocks are rated from A to F based on value, growth, and momentum characteristics, with higher scores indicating a better chance of outperforming the market [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] Value Score - The Value Score identifies stocks that are undervalued based on financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow, appealing to value investors [3] Growth Score - The Growth Score emphasizes a company's financial health and future growth potential, analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Score targets stocks with upward or downward trends in price or earnings, utilizing recent price changes and earnings estimate revisions to identify favorable buying opportunities [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive assessment of stocks based on value, growth, and momentum, aiding in narrowing down investment choices [6] Zacks Rank Integration - The Zacks Rank model uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [7][8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal investment potential [9] Stock Highlight: Tractor Supply Company (TSCO) - Tractor Supply Company, based in Brentwood, TN, is the largest retail farm and ranch store chain in the U.S., catering to recreational farmers, ranchers, tradesmen, and small businesses [11] - TSCO currently holds a 3 (Hold) Zacks Rank with a VGM Score of B, and a Momentum Style Score of B, having seen a 1.2% increase in shares over the past four weeks [12] - The Zacks Consensus Estimate for TSCO's earnings has risen to $2.17 per share, with an average earnings surprise of 1.4%, making it a stock of interest for investors [12][13]