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Fastenal (FAST) Gains As Market Dips: What You Should Know

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Fastenal (FAST - Free Report) closed the most recent trading day at $49.22, moving +0.02% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.44%. Meanwhile, the Dow lost 0.62%, and the Nasdaq, a tech-heavy index, added 0.5%.

Coming into today, shares of the maker of industrial and construction fasteners had gained 6.22% in the past month. In that same time, the Retail-Wholesale sector gained 2.09%, while the S&P 500 gained 2.71%.

Wall Street will be looking for positivity from FAST as it approaches its next earnings report date. On that day, FAST is projected to report earnings of $0.33 per share, which would represent year-over-year growth of 6.45%. Meanwhile, our latest consensus estimate is calling for revenue of $1.33 billion, up 4.18% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.48 per share and revenue of $5.62 billion, which would represent changes of +7.25% and +5.38%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for FAST. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.43% higher. FAST currently has a Zacks Rank of #3 (Hold).

In terms of valuation, FAST is currently trading at a Forward P/E ratio of 33.35. For comparison, its industry has an average Forward P/E of 17.78, which means FAST is trading at a premium to the group.

It is also worth noting that FAST currently has a PEG ratio of 3.71. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Building Products - Retail stocks are, on average, holding a PEG ratio of 1.12 based on yesterday's closing prices.

The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 58, which puts it in the top 23% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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