Retail Sector Ideas

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Tractor Supply - >>> This rural-lifestyle retailer is the best performer of these four stocks over the last five years, with a total return of around 280%.


https://www.fool.com/investing/2023/03/21/history-suggests-these-4-sp-500-stocks-could-soar/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article


Its incredible fourth-quarter report saw sales, same-store sales, and EPS rise by 21%, 9%, and 26%, respectively, proving that its growth in 2021 was more than just a pandemic-aided bump. In fact, the company has reported 31 consecutive years of sales growth, with revenue doubling again in the last six years alone.

Tractor Supply has 28 million members in its Neighbor's Club rewards program, thanks in part to its 25% market share in animal feed. These recurring purchases are crucial for the company's customers, and they help fuel Tractor Supply's stellar ROIC of 37%.

The company's 8% net income margin -- robust for a retailer -- helps to fund its dividend (with a 1.6% yield) and a stock buyback program that has lowered its share count by 20% in the last decade.

On top of this, Tractor Supply trades at a reasonable P/E of 24, making its predictable growth very enticing for investors focused on the long term.

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