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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 $49.54, moving +0.41% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.39%. Elsewhere, the Dow gained 0.12%, while the tech-heavy Nasdaq lost 0.1%.

Heading into today, shares of the maker of industrial and construction fasteners had gained 2.83% over the past month, lagging the Retail-Wholesale sector's gain of 3.81% and the S&P 500's gain of 4.06% in that time.

FAST will be looking to display strength as it nears its next earnings release. In that report, analysts expect FAST to post earnings of $0.33 per share. This would mark year-over-year growth of 6.45%. Meanwhile, our latest consensus estimate is calling for revenue of $1.33 billion, up 4.39% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.48 per share and revenue of $5.62 billion. These totals would mark changes of +7.25% and +5.42%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for FAST. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 0.43% higher. FAST is currently a Zacks Rank #3 (Hold).

Digging into valuation, FAST currently has a Forward P/E ratio of 33.44. For comparison, its industry has an average Forward P/E of 18.88, which means FAST is trading at a premium to the group.

Meanwhile, FAST's PEG ratio is currently 3.72. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Building Products - Retail industry currently had an average PEG ratio of 1.13 as of yesterday's close.

The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 43, which puts it in the top 17% 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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