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Winona, Minnesota-based Fastenal Company (FAST) engages in the wholesale distribution of industrial and construction supplies in North America and internationally. Valued at $43.2 billion by market cap, Fastenal offers various industrial and construction-related products through its company-owned stores.
Companies worth $10 billion or more are generally described as “large-cap stocks,” Fastenal fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the industrial distribution space.
Fastenal touched its all-time high of $84.88 on Nov. 11, 2024, and is currently trading 10.4% below that peak. FAST stock has dipped 2% over the past three months, outperforming the Nasdaq Composite’s ($NASX) 11.4% decline during the same time frame.
Furthermore, FAST gained 7.8% over the past six months, outpacing NASX’s 1% uptick during the same time frame. However, FAST observed a modest 1.4% gain over the past 52 weeks, notably underperforming NASX’s 11.5% returns during the same time frame.
To confirm the uptrend and recent downward consolidation, FAST has traded consistently above its 200-day moving average since mid-September 2024 and dropped below its 50-day moving average in mid-December while observing some fluctuations in recent weeks.
Despite missing Street’s estimates, Fastenal’s stock prices gained 1.8% after the release of its Q4 results on Jan. 17. Due to a broader slowdown and continued softness in manufacturing activities the company’s topline growth took a hit. Its daily sales for the quarter inched up 2.1% year-over-year to $29 million and due to an extra business day during the quarter compared to Q4 2023 Fastenal’s overall topline increased 3.7% to $1.8 billion which missed the Street’s expectations by 1.1%. Meanwhile, the company observed a notable increase in the cost of sales and SG&A expenses, leading to a 2.6% year-over-year decline in operating income to $344.8 million.
On a positive note, the company has observed a slight improvement in its capital structure. While its operating lease liability observed a slight increase, its long-term debt decreased 37.5% year-over-year to $125 million.
Meanwhile, Fastenal has notably outperformed its peer W.W. Grainger, Inc.’s (GWW) 3.6% decline over the past six months and a 1.7% dip over the past 52 weeks.
Among the 15 analysts covering the FAST stock, the consensus rating is a “Hold.” Its mean price target of $78.67 represents a modest 3.4% premium to current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
