Rural retail powerhouse Tractor Supply Company’s TSCO earnings outlook fell again after its Q2 earnings release on July 23.

The recent downturn extends a larger spiral of downward earnings revisions and lands TSCO stock a Zacks Rank #5 (Strong Sell).

Time for Investors to Stay Away from TSCO Stock?

Tractor Supply is the largest rural lifestyle retailer in the U.S. It operates roughly 2,500 Tractor Supply stores across 49 states.

The retailer sells farm and ranch supplies, pet and livestock products, tools, fencing, lawn and garden items, clothing, and other goods for farmers, ranchers, rural homeowners, and DIY customers.

TSCO’s earnings outlook has consistently fallen over the last several years as it faces multiple headwinds.

Tractor Supply is dealing with weaker demand for discretionary, seasonal, and big-ticket items, as well as other key setbacks, including its pet business.

The company is projected to see its earnings fall 4.4% YoY on 3% higher revenue. TSCO is projected to follow this up with 5% higher revenue next year and 8% YoY adjusted earnings growth.

That said, Tractor Supply missed our quarterly earnings estimates in six out of the past 10 quarters.

TSCO's fading earnings outlook and souring investor sentiment have pushed Tractor Supply stock down 40% YTD.

Some investors might want to put Tractor Supply stock on their watchlists. But it’s likely best to avoid buying TSCO stock until it shows some signs of a turnaround on the earnings front.

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This article originally published on Zacks Investment Research (zacks.com).

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