This is InvestTalk from KPP Financial, helping investors make sense of the markets one day at a time.

Here's your host, Luke Guerrero.

Good afternoon, fellow investors, and welcome to another week of Invest talk.

I'm your host, Luke Guerrero, and today is Monday, May 18th, 2026. Now, as always, we got a great show planned for you today, including a great and important

focus point, a market wrap up, and your finance and investment questions answered. To that end, why don't we kick

things off by answering a fresh caller question now? Hey, I'm talking about tractor supply.

TSCO. Wanted to know what you thought about it at this level. Thanks.

Tractor supply company is a name we used to hold for clients in one of our strategies.

You'll notice I use the past tense because we recently sold out of it.

Now, TSCO is the largest rural lifestyle retailer in the United States.

They do farm and ranch supplies, pet products, tools, seasonal goods, livestock feed

through their roughly 2,400 stores across the U.S.

Now, there has been significant price deterioration since April 21st.

TSCO has continued sliding, or they slid from roughly $52 in February down to about 42 in April. They've since fallen down to about $31 a share after being

up about 3.76% today. Now, revenue missed, net income and earnings per share declined year

over year. You had two consecutive quarters of

earning misses now on record. You had gross margins pressured by tariffs. You had cost inflation,

freight cost inflation. You had their pet category under pressure, new customer acquisition,

a bit softer than people had hoped to see. So I'm not telling you a lot of positives

here. One positive, though, take it with a grain of solid, as management did reaffirm their

full year guidance despite the Q1 miss. But this seems to be more of a structural problem

outside of their control. Now, you could say, okay, it's cheap, certainly cheaper than

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