Tractor Supply (TSCO) Traded Down Due to Unfavorable Weather

Wedgewood Partners, an investment management company, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, Wedgewood Composite’s net return was 7.1% compared to the Standard & Poor’s 10.9%, the Russell 1000 Growth Index’s 17.8%, and the Russell 1000 Value Index’s 3.8% return for the same period. In addition, you can check the fund’s best 5 holdings to know its best picks in 2025.

In its second quarter 2025 investor letter, Wedgewood Partners highlighted stocks such as Tractor Supply Company (NASDAQ:TSCO). Tractor Supply Company (NASDAQ:TSCO) is a rural lifestyle retailer in the United States. The one-month return of Tractor Supply Company (NASDAQ:TSCO) was 8.21%, and its shares gained 5.85% of their value over the last 52 weeks. On July 17, 2025, Tractor Supply Company (NASDAQ:TSCO) stock closed at $56.83 per share with a market capitalization of $30.131 billion.

Wedgewood Partners stated the following regarding Tractor Supply Company (NASDAQ:TSCO) in its second quarter 2025 investor letter:

“Tractor Supply Company (NASDAQ:TSCO) detracted from portfolio performance during the quarter after posting a modest decline in earnings on slightly negative sales driven by unfavorable weather during the spring selling season. The vagaries of inclement seasonal weather, be what they may, Tractor Supply continues to be a best-in-class retailer that focuses on serving their niche customers living in and maintaining rural homes and homesteads, with higher-than-average incomes. During the height of COVID-19 in the U.S., the Company grew substantially faster than their historical rates. Since then, and as consumer spending patterns have over corrected back towards services, we have seen growth normalize. However, Tractor Supply continues to exhibit excellent returns on capital and has ample addressable market to continue driving double-digit earnings growth through 2030.”

Tractor Supply: Dividend Strength Ahead

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Tractor Supply Company (NASDAQ:TSCO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held Tractor Supply Company (NASDAQ:TSCO) at the end of the first quarter, which was 40 in the previous quarter. In the first quarter of 2025, Tractor Supply Company (NASDAQ:TSCO) reported revenue of $3.47 billion, an increase of 2.1% year-over-year.While we acknowledge the risk and 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 and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Tractor Supply Company (NASDAQ:TSCO) and shared the list of the next generation dividend aristocrat stocks. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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