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In the latest trading session, Fastenal (FAST) closed at $50.48, marking a -0.53% move from the previous day. This change was narrower than the S&P 500's 0.66% loss on the day. Meanwhile, the Dow lost 0.29%, and the Nasdaq, a tech-heavy index, lost 1.25%.
Heading into today, shares of the maker of industrial and construction fasteners had gained 4.88% over the past month, outpacing the Retail-Wholesale sector's loss of 0.4% and the S&P 500's gain of 3.42% in that time.
FAST will be looking to display strength as it nears its next earnings release, which is expected to be January 20, 2021. In that report, analysts expect FAST to post earnings of $0.33 per share. This would mark year-over-year growth of 6.45%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.33 billion, up 4.26% from the year-ago period.
Investors might also notice recent changes to analyst estimates for FAST. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 past month, the Zacks Consensus EPS estimate has moved 0.09% lower. FAST is currently a Zacks Rank #3 (Hold).
Looking at its valuation, FAST is holding a Forward P/E ratio of 33.28. This represents a premium compared to its industry's average Forward P/E of 14.96.
Also, we should mention that FAST has a PEG ratio of 3.7. 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 was holding an average PEG ratio of 1.14 at yesterday's closing price.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 80, which puts it in the top 32% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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