Should You Expect Increased Earnings Growth in Tractor Supply Company (TSCO)?

Core Insights - Wedgewood Partners anticipates stronger market volatility in the coming years and has moderated its enthusiasm for investments [1] - The Wedgewood Composite returned -1.8% in Q4 2025, underperforming compared to the S&P 500's 2.7% and other indices [1] - The firm's focus on high-quality stocks has historically been successful since 1992, but faced challenges in 2025 due to poor stock selection and underweighting in AI stocks [1] Company Performance - Tractor Supply Company (NASDAQ:TSCO) stock closed at $51.01 on January 16, 2026, with a one-month return of -1.37% and a 52-week loss of 4.94% [2] - The company reported +7% growth in sales and +6% growth in operating income, benefiting from long-term investments in stores and distribution [3] - Approximately 80% of Tractor Supply's sales come from customers enrolled in its loyalty program, indicating a strong customer base [3] Investment Outlook - Wedgewood Partners acknowledges the potential of Tractor Supply Company but believes certain AI stocks offer greater upside potential with less downside risk [4] - The number of hedge funds holding Tractor Supply Company increased from 41 to 46 in the last quarter, indicating growing interest [4] - Expectations for accelerating earnings growth in 2026 are based on the company's investments in last-mile delivery and normalization of customer spending patterns [3]