Fastenal Co. (FAST): Zacks Rank Buy

Zacks

Fastenal Co. (NasdaqGS:FAST - News) has cranked out some very big gains over the last few months, recently hitting a new all-time high after jumping more than 50% since September. With a high industry rank and bullish growth projection, this Zacks #1 Rank stock is on the fast track with momentum.

Company Description

Fastenal Co operates as a wholesaler and retailer of industrial and construction supplies in North America. The company was founded in 1967 and has a market cap of $13.1 billion.

Although FAST found a short-term bottom in early August, shares got an extra boost on October 13 after the company reported strong Q3 results that included sharp gains from last year.

Third-Quarter Results

Sales for the period were up 20% from last year to $727 million. Income jumped 29% from last year to 33 cents, directly in line with the Zacks Consensus Estimate.

The company noted that it continues to pursuit an aggressive growth strategy, opening 94 new stores during the first 9 months of the year for a total store count of 2,584.

Financial Profile

Moving forward, Fastenal will continue to benefit from its strong financial profile, with cash and short-term investments of $137 million against no long-term debt.

Estimates

We've seen some very slight movement in estimates over the last month, with the current-year estimate up one penny to $1.21. The next-year estimate is also up a penny over the last month, climbing to $1.39, a bullish 15% growth projection.

Valuation

With a PEG ratio of 2.07, FAST trades at a premium to the benchmark of 1 for value.

12-Month Chart

On the chart, shares are up more than 50% in the last four months, recently hitting a new all-time high. Take a look below.

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