Back to top

Analyst Blog

Shares of Fastenal Company (FAST - Analyst Report) recently witnessed a 6.32% decline to $47.70 on Jun 05, 2013, following the release of its sales information for the month of May. The company reported drastic year-over-year decline in daily sales for May 2013.  

Fastenal’s daily sales growth rates came in at 5.3% for the month of May, significantly down from the daily growth rate of 13.1% in the corresponding prior-year month. Foreign exchange dragged May daily sales by 0.1%. A decline in non-residential construction customers also adversely impacted sales.

The company has been witnessing consistent decline in daily sales growth rates for the past few quarters. The sequential change in daily sales for 12 months from January to December also fell short of historical averages. The declining daily sales rates are due to lower sales of its fasteners product line, overall weak non-residential construction market and the uncertainty in U.S economic policy.

In fact, the company reported weak daily sales growth in the first quarter of 2013, despite year-over-year growth in earnings and revenues. Following the release of its first quarter 2013 earnings, Fastenal witnessed downward movement of estimates in the past 60 days. The Zacks Consensus Estimate for fiscal 2013 declined 2.4% to $1.60 over the last 60 days whereas the same for fiscal 2014 declined 2.6% to $1.86 over the last 60 days.

Fastenal carries a Zacks Rank #4 (Sell).

However, with the overall housing market improving steadily, other companies in the sector are also performing well. These include Lumber Liquidators Holdings, Inc. (LL - Snapshot Report), Builders FirstSource, Inc. (BLDR - Snapshot Report) and The Home Depot, Inc. (HD - Analyst Report). While Lumber carries a Zacks Rank #1 (Strong Buy), The Home Depot and Builders FirstSource carry a Zacks Rank #2 (Buy).



Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 3.80 +7.04%
BANCO DO BR… BDORY 14.74 +5.66%
AIR INDUSTR… AIRI 9.99 +4.15%
EQT MIDSTRE… EQM 98.14 +3.38%
WEATHERFORD… WFT 23.64 +3.10%