Tractor Supply: Inflation On The Way To Support Comps

Tractor Supply Company presents a positive risk skew ahead of earnings, trading at a historically attractive valuation with potential comp sales tailwinds. TSCO's CUE business, tied to consumables for farmers, could benefit from rising commodity prices, especially corn, supporting comp momentum. Recent margin compression and sluggish comps may reverse if inflation picks up, aiding both sales and SG&A leverage.