Strong buy and hold for 2026 with 27% upside – Magic Post

Strong buy and hold for 2026 with 27% upside

 – Magic Post

Tractor supply today

Tractor supply company logo
$56.28 -0.07 (-0.12%)

As of 10/24/2025 at 04:00 PM ET

52 week range
$46.85

$63.99

Dividend yield
1.63%

P/E ratio
27.06

Price target
$63.60

Tractor supply company Nasdaq: Tesco It’s a good stock to buy and hold for 2026 because its well-managed operations are growing profitably, maintaining cash flow growth, returning capital, and increasing shareholder distributions annually. This combination creates Strong leverage for shareholders– An irresistible force– Which causes the stock price to rise slowly over time.

The bottom line is that the stock price is trending higher, likely to continue into 2026 due to these factors, and could gain momentum if economic tailwinds start to blow. The FOMC is on track to cut its benchmark interest rate to 3.25% by June next year, easing economic headwinds and freeing up capital throughout the system, which will be reflected in retail sector results.

Third quarter tractor supply results confirm growth expectations and ability to achieve capital returns

The tractor supply company had a strong third quarter performance with revenue growing 7.2% to set a business record. The only bad news is that revenues are in line with consensus, which in and of itself does not provide a catalyst for higher stock prices. Other details, including a 3.9% store gain, improvement in ticket counts and averages, as well as an increase in the number of stores, do.

They indicate potential for additional growth and operational quality, which will be exacerbated by store count growth in the subsequent financial year. Other internal data that reflects strength is product mix, which includes strength in essence, CUE (consumable, usable, edible), and seasonal merchandise.

Margin news is another factor supporting expectations of higher stock prices. The company faced headwinds but maintained strong margins and beat consensus. Operating income rose 5.6%, net income rose 7.4%, and adjusted earnings rose 8.6%, supported by lower share counts. EPS of 49 cents is also about 200 basis points better than consensus, suggesting that Q4 guidance is very cautious.

Tractor Supply’s guidance would not typically be a catalyst for a strong share price increase, as the range has been narrowed to the lower end of previous targets. However, the market chose to focus on cash flow, balance sheet health, and ability to generate capital returns, and bought into the price decline that initially formed.

Guidance anticipates growth and may be cautious, setting the company up to maintain return on capital and outperform next quarter. Results from other retailers, including O’Reilly Automotive, were also strong in the comparable period, suggesting consumers have momentum heading into the holiday shopping period.

Tractor Supply helps investors increase value through dividends and buybacks

Tractor supply dividend payments

Dividend yield
1.63%

Annual profits
$0.92

Increasing track record profits
16 years old

Dividend distribution ratio
45.10%

Recent dividend payment
September 9

TSCO Earnings History

Tractor supply company Attractive return on capital, With dividends and annual buybacks in About 2.9% in the third quarter. The dividend yield is 1.65% as of late October and is reliable at 45% of earnings expectations. The company also increases payouts annually, and is expected to do so again this year.

The buybacks are semi-aggressive, reducing the share count by 1.1% year over year in the quarter, and providing investors with notable leverage. Cash flow remains strong enough to support stock appreciation, reduce outstanding shares, and pay dividends.

Analysis and institutions are on board with this capital return. MarketBeat analyst data reveals that coverage has increased in the past six months. Coverage is strong with 22 analyst reports tracking; Feelings are constant. The bias is bullish. The target price is rising.

The late October consensus is approaching $62.50, enough to reach a new all-time high, while the trend points to a $70 level and a 27% share price increase.

Tractor Show confirms trends after third quarter release and guidance update

The price movement of Tractor Supply Company was Clearly bullish Following the third quarter release and updated guidance. The market opened with the indicated loss but quickly rose, regained the loss, and then advanced by more than 5%.

This move created a large green candle moving up from previous support levels. Support is seen at the moving averages and is supported by the MACD and stochastic indicators, so it is likely to continue rising in line with its trend.

Initial resistance targets are located near $59.75 and $62. Once cleared, a move to the $72 area should follow over the next few quarters.

TSCO stock chart

Before you consider Tractor Supply, you’ll want to hear this.

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