Wedgewood Partners: “Tractor Supply (TSCO) is an Exceptional Retailer”

Wedgewood Partners, an investment management firm, published its fourth quarter 2022 investor letter – a copy of which can be downloaded here. A quarterly net increase of 5.2% has been recorded by the fund for the fourth quarter of 2022, below the S&P 500 Index’s 7.56% gain for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

In its Q3 2022 investor letter, Wedgewood Partners mentioned Tractor Supply Company (NASDAQ:TSCO) and explained its insights for the company. Founded in 1938, Tractor Supply Company (NASDAQ:TSCO) is a Brentwood, Tennessee-based retail chain company with a $22.8 billion market capitalization. Tractor Supply Company (NASDAQ:TSCO) delivered a -8.05% return since the beginning of the year, while its 12-month returns are down by -1.44%. The stock closed at $206.86 per share on January 19, 2023.

Here is what Wedgewood Partners has to say about Tractor Supply Company (NASDAQ:TSCO) in its Q3 2022 investor letter:

“Tractor Supply Company contributed favorably to performance during the quarter. Demand from the Company’s niche, affluent rural customer base continues to normalize in a postPandemic world with comparable store sales running a sterling +46% higher and total sales +65% higher compared to pre-pandemic (2019) levels. Despite historically high levels of cost inflation and aggressive reinvestment, the Company has also managed to expand margins relative to 2019, helping drive higher and sustained returns on capital. Key to much of this success has been the management’s exceptional job overseeing inventories in an environment with unprecedented supply-chain disruptions. The vast majority of the Company’s merchandise is sourced from North America, helping it avoid the long lead times that have hurt many trans-Pacific supply chains. Tractor Supply is an exceptional retailer, and we continue to hold it as a top position.”

ESB Professional/Shutterstock.com

Our calculations show that Tractor Supply Company (NASDAQ:TSCO) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Tractor Supply Company (NASDAQ:TSCO) was in 37 hedge fund portfolios at the end of the second quarter of 2022, compared to 41 funds in the previous quarter. Tractor Supply Company (NASDAQ:TSCO) delivered a 9.14% return in the past 3 months.

In December 2022, we also shared another hedge fund’s views on Tractor Supply Company (NASDAQ:TSCO) in 5 Best Farmland and Agriculture Stocks To Buy Heading Into 2023. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters Q4 2022 page.

Suggested Articles:

• 12 Best Holding Company Stocks To Invest In
• 12 Best Bid Data Stocks To Buy
• 15 Biggest Window Manufacturing Companies

Disclosure: None. This article is originally published at Insider Monkey.