Long Position on TSCO @ $94.50 on 5/5/2016 (Momentum)

Tractor Supply Company (TSCO) operates rural lifestyle retail stores in the United States.

It offers a selection of merchandise, including equine, livestock, pet, and small animal products necessary for their health, care, growth, and containment; hardware, truck, towing, and tool products; seasonal products, such as heating products, lawn and garden items, power equipment, gifts, and toys; work/recreational clothing and footwear; and maintenance products for agricultural and rural use.

As of December 26, 2015, the company operated 1,488 stores in 49 states.

It operates its retail stores under the Tractor Supply Company, Del’s Feed & Farm Supply, and HomeTown Pet names. The company also operates an e-commerce Website at TractorSupply.com. It sells its products to recreational farmers, ranchers, and others, as well as tradesmen and small businesses. 

Shares have formed a bullish "flag" following the company's solid quarterly report and a 20% hike in its dividend. The company’s earnings rose 19% year over year to 50 cents per share, 4 cents above the estimates. The company’s gross profit jumped 11.2% year over year to $494.4 million. Gross margin expanded 30 basis points (bps) to 33.7%  Higher share prices are expected for this stock.

52-Weeks Trading Range: $75.00 - $97.25

Entry Point:  $94.50

Stop Loss: $89.75

Target Price: $104.00

Updates

6/30/2016 11:13:29 AM

TSCO closed at $91.75

Position closed on 6/30/2016 at price of $91.75 with a -2.91% loss in 56 days.

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