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Here's Why Fastenal (FAST) Gained But Lagged the Market Today
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In the latest market close, Fastenal (FAST - Free Report) reached $64.04, with a +0.25% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 1.37%. Meanwhile, the Dow gained 1.4%, and the Nasdaq, a tech-heavy index, added 1.38%.
Shares of the maker of industrial and construction fasteners witnessed a gain of 4.72% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 5.12% and the S&P 500's gain of 5.37%.
Investors will be eagerly watching for the performance of Fastenal in its upcoming earnings disclosure. The company is expected to report EPS of $0.45, up 4.65% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.75 billion, up 3.12% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $2 per share and a revenue of $7.34 billion, demonstrating changes of +5.82% and +5.1%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Fastenal. These recent revisions tend to reflect the evolving nature of short-term business trends. 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 take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Fastenal currently has a Zacks Rank of #3 (Hold).
Investors should also note Fastenal's current valuation metrics, including its Forward P/E ratio of 31.87. This represents a premium compared to its industry's average Forward P/E of 10.83.
Also, we should mention that FAST has a PEG ratio of 3.54. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Building Products - Retail industry currently had an average PEG ratio of 1.97 as of yesterday's close.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 91, finds itself in the top 37% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Here's Why Fastenal (FAST) Gained But Lagged the Market Today
In the latest market close, Fastenal (FAST - Free Report) reached $64.04, with a +0.25% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 1.37%. Meanwhile, the Dow gained 1.4%, and the Nasdaq, a tech-heavy index, added 1.38%.
Shares of the maker of industrial and construction fasteners witnessed a gain of 4.72% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 5.12% and the S&P 500's gain of 5.37%.
Investors will be eagerly watching for the performance of Fastenal in its upcoming earnings disclosure. The company is expected to report EPS of $0.45, up 4.65% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.75 billion, up 3.12% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $2 per share and a revenue of $7.34 billion, demonstrating changes of +5.82% and +5.1%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Fastenal. These recent revisions tend to reflect the evolving nature of short-term business trends. 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 take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Fastenal currently has a Zacks Rank of #3 (Hold).
Investors should also note Fastenal's current valuation metrics, including its Forward P/E ratio of 31.87. This represents a premium compared to its industry's average Forward P/E of 10.83.
Also, we should mention that FAST has a PEG ratio of 3.54. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Building Products - Retail industry currently had an average PEG ratio of 1.97 as of yesterday's close.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 91, finds itself in the top 37% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.