Fastenal (FAST) Outpaces Stock Market Gains: What You Should Know
Fastenal (FAST) closed the latest trading day at $75.26, indicating a +1.26% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily gain of 1.12%. Meanwhile, the Dow experienced a rise of 0.61%, and the technology-dominated Nasdaq saw an increase of 1.54%.
Heading into today, shares of the maker of industrial and construction fasteners had gained 6.16% over the past month, outpacing the Retail-Wholesale sector's gain of 1.42% and the S&P 500's gain of 2.06% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Fastenal in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.53, marking a 1.92% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.92 billion, up 3.06% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.15 per share and a revenue of $7.79 billion, signifying shifts of +6.44% and +6.06%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Fastenal. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.06% higher. As of now, Fastenal holds a Zacks Rank of #3 (Hold).
In the context of valuation, Fastenal is at present trading with a Forward P/E ratio of 34.61. For comparison, its industry has an average Forward P/E of 13.25, which means Fastenal is trading at a premium to the group.
We can additionally observe that FAST currently boasts a PEG ratio of 3.85. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Building Products - Retail stocks are, on average, holding a PEG ratio of 1.77 based on yesterday's closing prices.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 169, putting it in the bottom 33% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow FAST in the coming trading sessions, be sure to utilize Zacks.com.
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Fastenal Company (FAST) : Free Stock Analysis Report
