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Tractor Supply Company: Still Too Expensive

Patrick Doyle profile picture
Patrick Doyle


  • There's much to like about the company's financial performance in 2021. The fact that management has increased the payout ratio to 40% is also intriguing.
  • The problem is the stock. The shares are priced too richly in my view, so I must continue to avoid them.
  • Thankfully the options market allows investors to generate very decent premia on deep out of the money puts.
Young woman in western corral with horse

Tony Anderson/DigitalVision via Getty Images

Since I put out my cautious piece on Tractor Supply Company Inc. (NASDAQ:TSCO), the shares are up about 67% against a gain of about 40.5% for the S&P 500. Much has happened since, so I thought I'd check back in to see

This article was written by

Patrick Doyle profile picture
I'm a quant investment newsletter writer who marries fundamental analysis with the latest research in momentum. Over the past few years, I’ve developed a piece of software that helps me track the level of optimism and pessimism embedded in stock price. I seek to challenge the assumptions embedded in price by profitably exploiting the disconnect between what the market thinks and what is a likely outcome. I invest in those companies that have a greater than average chance of giving us all a surprise in the next few months.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of TSCO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I just sold 10 of the puts described in this article for $2.30 each.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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