Tractor Supply Company : We could expect a rally
By Josselin Giraud
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
$84.6 | $0 | $81.9 | -100% |
From a fundamental viewpoint, the security is not yet expensive with a PER of 19.38x for 2013. Besides, EV/Sales is low with a ratio at 1.11x for this year.
Tractor Supply is oversold and near to USD 83.4 support. This situation gives credit to a potential technical rebound. Thus, the stock could find new energy and would rise towards the next USD 90.75 resistance.
So as to make the most of a potential technical rebound of Tractor Supply, it seems opportune to take a long position at the current price. A confirmation of this pattern would enable the security to reach the USD 90.75 resistance. Investors should not insist under USD 83.4 and should place a stop loss order under this threshold.