Tractor Supply Company Can Plow New Highs in 2026

Core Viewpoint - Tractor Supply Company's stock price is expected to trend to new highs by 2026, supported by long-term growth trends despite tepid Q4 results [2] Group 1: Financial Performance - The company reported $3.9 billion in net revenue for Q4, achieving a 3.4% year-over-year growth, with expectations for continued growth in the upcoming year [5] - The dividend yield is approximately 1.8%, with a reliable payout at 45% of the earnings forecast, and is expected to grow significantly [4] - Share repurchases totaled $117.5 million, reducing the share count by 1.1% year-over-year, with forecasts indicating $400 million in repurchases for 2026, exceeding the fiscal 2025 amount by over 10% [5] Group 2: Market Position and Strategy - Tractor Supply Company operates as a big-box retailer in underserved rural areas, gaining market share through store count growth and market penetration [3] - The company added 32 stores in Q4, totaling 100 new stores year-over-year, representing a 4% increase in the existing store count [6] - Comparable store sales growth was positive but weaker than expected at 0.3%, driven solely by transaction volume [6] Group 3: Future Outlook - The company is positioned as a value opportunity in Q1 2026, with shares trading near long-term lows and analysts indicating a potential 20% upside [7] - Guidance for 2026 aligns with trends in growth, profits, and capital returns, suggesting higher share prices are forthcoming [7]