Fastenal Company ( FAST Quick Quote FAST - Free Report) inked a deal with a worldwide leader in intelligent electric vehicle (EV) systems — ZEVX. Per the partnership, FAST and ZEVX will perform an operational trial in six states to convert pickup trucks into EVs. The ZEVX premier battery electric powertrain and power system products will repower nearly 16 Fastenal vehicles this year. The move is in line with FAST’s intention to be a driver of innovation and efficiency in the commercial transportation system. Impressively, the ZEVX technology will help the industry move forward and substantially accelerate the carbon reduction initiative. Post-trial, if feasible, Fastenal will operationalize battery electric technology in its fleet of 700-plus commercial motor vehicles and 8,200-plus last-mile delivery vehicles. Earlier this year, Fastenal purchased an Orange EV electric yard tractor for its Indianapolis distribution center and the vehicle went into operation in July. It also participated in a fleet-electrification collaboration program with Penske Truck Leasing and Daimler Trucks North America. This included running two electric straight trucks for 18 months and also completing a short-term pilot of a pre-series electric Class 8 semi-truck. This national wholesaler of industrial and construction supplies distributes its products through more than 3,200 company-owned stores, mostly located in North America. Its FAST Solutions, an industrial vending process, has the potential to revolutionize the industrial distribution system and increase profitability. Image Source: Zacks Investment Research
Although shares of the company underperformed the
industry in the past three months, earnings estimates for 2023 of $1.98 per share reflect 4.5% year-over-year growth despite ongoing challenges. The trend is likely to continue given its solid cost-control measures, combative investment to increase Onsite locations and focus on e-commerce business. The company is benefiting from higher demand for industrial capital goods and commodities and its focus on virtual platforms to boost customer engagement. Zacks Rank & Key Picks
Fastenal carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Retail-Wholesale sector are: Kura Sushi USA, Inc. ( KRUS Quick Quote KRUS - Free Report) sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. The company has a trailing four-quarter earnings surprise of 139.7% on average. The Zacks Consensus Estimate for KRUS’s 2023 sales and EPS indicates 33.4% and 300% growth, respectively, from the year-ago period’s levels. Arcos Dorados Holdings Inc. ( ARCO Quick Quote ARCO - Free Report) currently carries a Zacks Rank #2 (Buy). ARCO has a long-term earnings growth rate of 11.4%. The Zacks Consensus Estimate for Arcos Dorados’ 2023 sales and EPS indicates 19.2% and 13% growth, respectively, from the year-ago period’s levels. Chuy's Holdings, Inc. ( CHUY Quick Quote CHUY - Free Report) carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 26.6% on average. The Zacks Consensus Estimate for CHUY’s 2023 sales and EPS indicate an increase of 9.5% and 32.9%, respectively, from the year-ago period’s levels.