We recently compiled a list of the 10 Stocks Battered by Bearish Outlooks. In this article, we are going to take a look at where Tractor Supply Company (NASDAQ:TSCO) stands against the other stocks.

Ten firms ended Tuesday suffering a sell-off, as investor sentiment continues to be dampened by macroeconomic uncertainties and bearish outlooks from analysts and their management.

The stocks--three of which belong to the travel and tourism industry--registered losses following lower outlook guidance, taking into account the potential effects of President Donald Trump’s trade war with other countries.

The pessimistic sentiment mirrored the broader market decline, with the Dow Jones slashing another 1.14 percent during the day, the S&P dropping 0.76 percent, and the Nasdaq dipping 0.18 percent.

To come up with the list, we considered only the stocks with at least $2 billion in market capitalization and $5 million in trading volume.

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Tractor Supply Company (NASDAQ:TSCO)

Tractor Supply Company (NASDAQ:TSCO) saw its share prices drop by 5.75 percent on Tuesday to close at $53.92 apiece as investors sold off positions to mitigate risks from the potential impact of the ongoing trade war on its business.

Tractor Supply Company (NASDAQ:TSCO), which sells a range of products from pet supplies to home improvement, stands to hurt from expected price increases and supply chain disruption as a result of the ongoing trade war.

Other retail giants have already signaled earlier that higher prices would likely result in rising prices of products and could significantly impact profit margins.

Despite uncertainties, an analyst from Piper Sandler on Tuesday gave Tractor Supply Company (NASDAQ:TSCO) an “overweight” rating with a consistent price target of $65, saying that the firm is expected to benefit from the robust demand for backyard chickens which is targeted to contribute between 1 and 1.5 percent in sales in the first semester of the year.

Overall TSCO ranks 10th on our list of Tuesday's worst performers. While we acknowledge the potential of TSCO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TSCO but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

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