Should You Expect Increased Earnings Growth in Tractor Supply Company (TSCO)?

2 weeks ago 8

Soumya Eswaran

Mon, January 19, 2026 astatine 8:16 AM CST 3 min read

Wedgewood Partners, an concern absorption company, released its fourth-quarter 2025 capitalist letter. The steadfast anticipates stronger marketplace volatility successful the coming years and has moderated its enthusiasm. A transcript of the missive tin beryllium downloaded here. The Wedgewood Composite returned -1.8% (net) successful the 4th fourth compared to the S&P 500’s 2.7%, the Russell 1000 Growth Index’s 1.1%, and the Russell 1000 Value Index’s 3.8% returns. YTD, the Composite gained 4.3% compared to 17.9%, 18.6%, and 15.9% returns for the indexes, respectively. Wedgewood Partners’ absorption connected high-quality stocks has historically worked since 1992, but not successful 2025. The missive highlighted mediocre banal selection, the portfolio’s beardown past performers owed for valuation correction, and being structurally underweight successful AI stocks drove the underperformance. The missive noted that successful 2026, crowded AI investments and stretched valuations make unit connected prudent concern decisions. In addition, you tin cheque the Fund’s apical 5 holdings to find its champion picks for 2025.

In its fourth-quarter 2025 capitalist letter, Wedgewood Partners highlighted stocks specified arsenic Tractor Supply Company (NASDAQ:TSCO). Tractor Supply Company (NASDAQ:TSCO) is simply a agrarian manner retailer successful the United States. On January 16, 2026, Tractor Supply Company (NASDAQ:TSCO) banal closed astatine $51.01 per share. One-month instrumentality of Tractor Supply Company (NASDAQ:TSCO) was -1.37%, and its shares mislaid 4.94% of their worth implicit the past 52 weeks. Tractor Supply Company (NASDAQ:TSCO) has a marketplace capitalization of $26.95 billion.

Wedgewood Partners stated the pursuing regarding Tractor Supply Company (NASDAQ:TSCO) successful its 4th fourth 2025 capitalist letter:

"Tractor Supply Company (NASDAQ:TSCO) besides detracted from performance. The Company posted +7% maturation successful income and +6% maturation successful operating income, arsenic absorption concluded respective semipermanent investments into its stores and organisation infrastructure. Tractor Supply has carved retired a defensible niche successful agrarian markets, peculiarly among higher-income earners, with astir 80% of its income derived from customers enrolled successful its loyalty program. We expect to spot accelerating net maturation successful 2026 arsenic the Company laps its investments successful inal-mile transportation and nonstop sales, on with lawsuit spending patterns that should normalize pursuing a fewer years of abnormal weather."

Tractor Supply Company (NASDAQ:TSCO) is not connected our database of 30 Most Popular Stocks Among Hedge Funds. According to our database, 46 hedge money portfolios held Tractor Supply Company (NASDAQ:TSCO) astatine the extremity of the 3rd quarter, up from 41 successful the erstwhile quarter. While we admit the imaginable of Tractor Supply Company (NASDAQ:TSCO) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.