It's top of the first inning of earnings season and one of the first companies up to bat is construction supplies distributor Fastenal. If you're looking for a stock that's in a buy range ahead of its earnings, Fastenal stock fits that bill. The company plans to report first quarter earnings early on April 13.
The stock is 3% above a 58.39 buy point from a first-stage cup with handle.
Fastenal Stock Favored By Big Funds
Fastenal has a 91 Composite Rating and earns the No. 6 rank among its peers in the 21-stock Retail/Wholesale-Building Products industry group. GMS, Huttig Building Products and Tractor Supply are among the top 5 highly rated stocks in the group.
Additionally, Fastenal stock has a B Accumulation/Distribution Rating, indicating that institutional investors like mutual funds are fairly heavy buyers of its stock. And it carries a rich 86 EPS Rating, out of 99.
In terms of fundamentals, the company has posted rising EPS growth in each of the last two reports. Revenue gains have also increased over the same time frame. Last quarter the Winona, Minn.-based company, near Minneapolis, reported 18% earnings growth to 40 cents per share. Revenue grew 13% to $1.53 billion.
Analysts expect earnings growth of 18% for the first quarter, and 13% growth for the full year.
See How IBD Helps You Make More Money In Stocks
Keep in mind that jumping into a stock right as it gets ready to report, like Fastenal stock, means you likely won't have enough time to build a profit cushion before the release. That leaves you exposed to a sudden and perhaps sharp drop if the company disappoints investors with poor numbers and/or weak guidance.
You can reduce your exposure by waiting to see how the company reports and how the market reacts.
Note: Dates for earnings reports are subject to change. Check the company's website for any updates.
