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Fastenal (FAST) Stock Sinks As Market Gains: What You Should Know

Zacks Equity Research
·3 mins read

Fastenal (FAST) closed at $44.76 in the latest trading session, marking a -0.73% move from the prior day. This change lagged the S&P 500's 0.53% gain on the day. Meanwhile, the Dow gained 0.13%, and the Nasdaq, a tech-heavy index, added 1.42%.

Coming into today, shares of the maker of industrial and construction fasteners had lost 9.22% in the past month. In that same time, the Retail-Wholesale sector lost 3.37%, while the S&P 500 lost 3.76%.

Wall Street will be looking for positivity from FAST as it approaches its next earnings report date. This is expected to be October 13, 2020. On that day, FAST is projected to report earnings of $0.37 per share, which would represent no growth from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.41 billion, up 2.44% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.46 per share and revenue of $5.61 billion, which would represent changes of +5.8% and +5.21%, respectively, from the prior year.

Any recent changes to analyst estimates for FAST should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. FAST is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, FAST is holding a Forward P/E ratio of 30.88. Its industry sports an average Forward P/E of 18.32, so we one might conclude that FAST is trading at a premium comparatively.

We can also see that FAST currently has a PEG ratio of 3.43. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. FAST's industry had an average PEG ratio of 1.18 as of yesterday's close.

The Building Products - Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 18, putting it in the top 8% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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