Fastenal Company (FAST - Free Report) recently released its May sales report, wherein average daily sales (“ADS”) grew 17.6% to $28.1 million, slightly moderating sequentially. In April 2022, daily sales registered 20.3% growth, whereas the same had declined 3.2% in May 2021.
Daily sales, on a constant currency basis, were up 18.3% last month compared with 20.5% in April 2022. Issues like price inflation, supply-chain challenges and shortage of labor are negatively impacting its growth rate. Nonetheless, Fastenal continues to navigate these challenges thanks to healthy end-market demand.
End-Market Perspective, Product Lines & Customers
From an end-market perspective, manufacturing sales improved 22.4% for the month compared with 18.9% growth a year ago. Non-residential construction grew 10.7% compared with a 4.4% rise reported in May 2021. The average daily sales growth rate in non-residential and manufacturing end markets slipped sequentially in May 2022.
Fastenal derives sales from Fasteners, Safety and other product lines. Fasteners (representing about one-third of total sales) witnessed 20% growth in sales last month compared with 28.2% increase registered in the year-ago period. On a monthly basis, Fasteners’ sales were up 25.2% in March, 25.5% in April and 20% in May this year. Safety products improved 15.6% in May against the 44.1% decline in the year-ago period. Safety categories improved 16.7% in April 2022.
In terms of customer/channel, National account daily sales growth advanced 22% last month from a year ago, given that 87% of the top 100 accounts and 71.9% of public branches are expanding. Also, non-national accounts were up 12% year over year for the month. In the year-ago period, daily sales in non-national accounts were down 2% year over year.
Regionally, daily sales growth in the United States and Canada/Mexico were 19.1% and 14.7%, respectively, last month. Daily sales in rest of the world, however, declined 5.8%.
Shares of the company have outperformed the industry so far this year. Although daily sales have moderated sequentially on account of a potentially slower macro environment, we believe this Zacks Rank #2 (Buy) company is well positioned to navigate through these challenges given end-market demand, cost-control efforts, and aggressive investment to increase on-site locations, vending machines and e-commerce business. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
3 Other Retail-Wholesale Stocks Hogging the Limelight
Some other top-ranked stocks, which warrant a look in the Zacks Retail-Wholesale sector are Beacon Roofing Supply, Inc. (BECN - Free Report) , Tecnoglass Inc. (TGLS - Free Report) and BBQ Holdings, Inc. .
Beacon Roofing Supply carries a Zacks Rank #2. Shares of the company have risen 10.6% year to date.
The Zacks Consensus Estimate for BECN’s 2022 sales and EPS suggests growth of 23.5% and 34.2%, respectively, from the year-ago period’s levels.
Tecnoglass carries a Zacks Rank #2. Shares of the company have lost 19% year to date.
The Zacks Consensus Estimate for TGLS’ 2022 sales and EPS suggests growth of 21.3% and 28.7%, respectively, from the year-ago period’s levels.
BBQ Holdings also carries a Zacks Rank #2. Shares of the company have decreased 21.9% year to date.
The Zacks Consensus Estimate for BBQ Holdings’ 2022 sales and EPS suggests growth of 46.1% and 67.6%, respectively, from the year-ago period’s levels.
Where Will Stocks Go…
If Biden Wins? If Trump Wins?
The answers may surprise you.
Since 1950, even after negative midterm years, the market has never had a lower presidential election year. With voters energized and engaged, the market has been almost unrelentingly bullish no matter which party wins!
Now is the time to download Zacks' free Special Report with 5 stocks that offer extreme upside for both Democrats and Republicans…
1. Medical manufacturer has gained +11,000% in the last 15 years.
2. Rental company is absolutely crushing its sector.
3. Energy powerhouse plans to grow its already large dividend by 25%.
4. Aerospace and defense standout just landed a potentially $80 billion contract.
5. Giant Chipmaker is building huge plants in the U.S.
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Fastenal Company (FAST - Free Report) recently released its May sales report, wherein average daily sales (“ADS”) grew 17.6% to $28.1 million, slightly moderating sequentially. In April 2022, daily sales registered 20.3% growth, whereas the same had declined 3.2% in May 2021.
Daily sales, on a constant currency basis, were up 18.3% last month compared with 20.5% in April 2022. Issues like price inflation, supply-chain challenges and shortage of labor are negatively impacting its growth rate. Nonetheless, Fastenal continues to navigate these challenges thanks to healthy end-market demand.
End-Market Perspective, Product Lines & Customers
From an end-market perspective, manufacturing sales improved 22.4% for the month compared with 18.9% growth a year ago. Non-residential construction grew 10.7% compared with a 4.4% rise reported in May 2021. The average daily sales growth rate in non-residential and manufacturing end markets slipped sequentially in May 2022.
Fastenal derives sales from Fasteners, Safety and other product lines. Fasteners (representing about one-third of total sales) witnessed 20% growth in sales last month compared with 28.2% increase registered in the year-ago period. On a monthly basis, Fasteners’ sales were up 25.2% in March, 25.5% in April and 20% in May this year. Safety products improved 15.6% in May against the 44.1% decline in the year-ago period. Safety categories improved 16.7% in April 2022.
In terms of customer/channel, National account daily sales growth advanced 22% last month from a year ago, given that 87% of the top 100 accounts and 71.9% of public branches are expanding. Also, non-national accounts were up 12% year over year for the month. In the year-ago period, daily sales in non-national accounts were down 2% year over year.
Regionally, daily sales growth in the United States and Canada/Mexico were 19.1% and 14.7%, respectively, last month. Daily sales in rest of the world, however, declined 5.8%.
Shares of the company have outperformed the industry so far this year. Although daily sales have moderated sequentially on account of a potentially slower macro environment, we believe this Zacks Rank #2 (Buy) company is well positioned to navigate through these challenges given end-market demand, cost-control efforts, and aggressive investment to increase on-site locations, vending machines and e-commerce business. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
3 Other Retail-Wholesale Stocks Hogging the Limelight
Some other top-ranked stocks, which warrant a look in the Zacks Retail-Wholesale sector are Beacon Roofing Supply, Inc. (BECN - Free Report) , Tecnoglass Inc. (TGLS - Free Report) and BBQ Holdings, Inc. .
Beacon Roofing Supply carries a Zacks Rank #2. Shares of the company have risen 10.6% year to date.
The Zacks Consensus Estimate for BECN’s 2022 sales and EPS suggests growth of 23.5% and 34.2%, respectively, from the year-ago period’s levels.
Tecnoglass carries a Zacks Rank #2. Shares of the company have lost 19% year to date.
The Zacks Consensus Estimate for TGLS’ 2022 sales and EPS suggests growth of 21.3% and 28.7%, respectively, from the year-ago period’s levels.
BBQ Holdings also carries a Zacks Rank #2. Shares of the company have decreased 21.9% year to date.
The Zacks Consensus Estimate for BBQ Holdings’ 2022 sales and EPS suggests growth of 46.1% and 67.6%, respectively, from the year-ago period’s levels.
Where Will Stocks Go…
If Biden Wins? If Trump Wins?
The answers may surprise you.
Since 1950, even after negative midterm years, the market has never had a lower presidential election year. With voters energized and engaged, the market has been almost unrelentingly bullish no matter which party wins!
Now is the time to download Zacks' free Special Report with 5 stocks that offer extreme upside for both Democrats and Republicans…
1. Medical manufacturer has gained +11,000% in the last 15 years.
2. Rental company is absolutely crushing its sector.
3. Energy powerhouse plans to grow its already large dividend by 25%.
4. Aerospace and defense standout just landed a potentially $80 billion contract.
5. Giant Chipmaker is building huge plants in the U.S.
Hurry, Download Special Report FREE >>
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