|Bid||30.72 x 4000|
|Ask||35.00 x 900|
|Day's Range||30.72 - 31.65|
|52 Week Range||23.68 - 35.94|
|Beta (3Y Monthly)||1.61|
|PE Ratio (TTM)||22.94|
|Earnings Date||Jul 9, 2019 - Jul 15, 2019|
|Forward Dividend & Yield||1.72 (2.44%)|
|1y Target Est||67.00|
Managers who are frugal, both in their personal lives and in their compensation, generally run companies with higher returns on capital than those overseen by the most highly compensated managers
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Fastenal Company...
Fastenal (FAST) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
Fastenal Co NASDAQ/NGS:FASTView full report here! Summary * ETFs holding this stock have seen outflows over the last one-month * Bearish sentiment is moderate and declining * Economic output in this company's sector is expanding Bearish sentimentShort interest | PositiveShort interest is moderate for FAST with between 5 and 10% of shares outstanding currently on loan. However, this was an improvement in sentiment as investors who seek to profit from falling equity prices reduced their short positions on April 29. Money flowETF/Index ownership | NegativeETF activity is negative. Over the last one-month, outflows of investor capital in ETFs holding FAST totaled $5.73 billion. Additionally, the rate of outflows appears to be accelerating. Economic sentimentPMI by IHS Markit | PositiveAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Consumer Services sector is rising. The rate of growth is strong relative to the trend shown over the past year, and is accelerating. Credit worthinessCredit default swapCDS data is not available for this security.Please send all inquiries related to the report to firstname.lastname@example.org.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card! After reading Fastenal Company's (NASDAQ:FAST) latest earnings update (31 March 2019), I found it ben...
Warren Buffett has a problem. One-hundred and twelve billion of them to be exact. That's the amount of cash that Berkshire Hathaway (NYSE:BRK.A,NYSE:BRK.B) has on its balance sheet at the end of 2018. And odds are, Buffett's cash hoard has only grown over the last three months as his vast empire continues to pay some hefty dividends. The problem for Warren Buffett and Berkshire is that amount of cash starts to be a real drag on its profitability and returns. So, for the last year or so, Buffett has been searching for a firm to buy. And given BRK's size, it needs to be a big one to move the needle. Unfortunately, the Oracle of Omaha hasn't found just the right one yet.But there could be plenty of choices. * 7 Stocks That Are Soaring This Earnings Season Analysts have started to look at what Buffett could buy to add to the Berkshire Hathaway arsenal. In total, about 141 different firms could meet the Warren Buffett standard for cash flows, profitability and value. Here are the best possible Warren Buffett stocks that regular retail investors may want to snag up as well.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Cincinnati Financial Corporation (CINF)Source: Shutterstock It's no secret that Warren Buffett loves insurance stocks and BRK is chockfull of them. That's because Buffett loves their float. An insurance company's float is basically all the premiums it's collected, but hasn't paid out just yet. This money can be invested in a wide range of things -- with some caveats on amounts. Most insurance companies use bonds and other fixed-income instruments, but not all. Berkshire's subsidiaries use their float to bet on stocks.And so does insurer Cincinnati Financial Corporation (NASDAQ:CINF).CINF is property and causality insurer that has been very successful in using its float to boost its returns over the years. Additionally, the company has some very conservative underwriting standards which have helped limit losses. Combining this plus its local agent-specific businesses model -- which partners with existing insurance agencies to promote its businesses -- and Cincinnati Financial has been a long-term winner.In fact, with its last dividend hike, CINF has managed to raise its dividend for 59 years straight.That sort of steadfastness could be exactly what Buffett is looking for. Moreover, CINF could be an easy fit into Berkshire's other insurance assets. With a market cap of around $15 billion, the stock would be an easy one for Buffett to swallow as well. Fastenal (FAST)Source: Shutterstock If there is one thing Buffett likes, its simple to explain businesses that churn out hefty cash flows year in and year out. That's basically what Fastenal (NASADQ:FAST) has been doing for the last 50 years.FAST produces and sells a variety of hardware and supplies that other industrial firms or businesses need to keep running. This includes everything from boring nuts and bolts to more exotic fare like tools and pumps. It's basically an industrial supplier to the industrials. That's a good place to be.Over the years, Fastenal has cemented itself as one of the top players in this niche. The key for the firm comes down to its relationships with other industrials and manufacturers. FAST's system makes it easy for procurement managers to order. The firm operates more than 2,220 branches and a hefty online website. But the real win is that FAST has been able to get inside manufacturers themselves. This comes from Fastenal's storage bin replenishment and vending machine programs. Here, FAST is able to directly integrate into a manufacturer's ordering/supply chain and allows for ease of repeat customers. Simply, FAST is able to integrate itself into a customers' workflow. Last year, the firm processed more than 41 million orders and pulled in more than $5 billion in revenues. More importantly, it has allowed FAST to grow at a very hefty clip in terms of margins and profits. * 10 Times Apple's Hardware Failed Consumers -- And Hurt Its Business With a wide moat, great growth and $20 billion market-cap, Buffett could and should swallow up Fastenal. Sherwin-Williams (SHW)Source: Shutterstock Buffett is clearly a fan of homeownership as several of Berkshire Hathaway's subsidiaries focus on products for construction and decorating. This includes carpet-producer Shaw Flooring. Under this banner, paint-producer Sherwin-Williams (NYSE:SHW) could get the nod from Buffett.With its 2017 purchase of Valspar, SHW became the global leader in paints and coatings. This includes a hefty amount of paints and stains for personal/home use. But the real reason why Buffett could give SHW a nod is its industrial businesses. Sherwin-Williams produces a ton of different coatings and paints for a variety of industries -- including lucrative aerospace and automotive/transportation finishes. These sort of performance coatings have been a bright spot in its business -- with sales jumping 5% in the last quarter. Profits here jumped by over 60% as Valspar was able to significantly contribute. That's the sort of growth that Buffett would love to see inside Berkshire.And Buffett could find plenty to love in its dividend as well.Thanks to big growth in several of these performance coatings segments, Sherwin-Williams recently was able to raise its dividend by an eye-popping 31%. Meanwhile, the stocks payout ratio is measly 23%. That leaves plenty of room for future payout increases.In the end, SHW is the kind of specialty industrial business that throws off serious cash flows. Exactly what characterizes most Warren Buffett stocks. Southwest Airlines (LUV)Source: Jerry Landers via Flickr (Modified)The long joke among investors is that investing in an airline was the surest way to lose to money. For the longest time, no Warren Buffett stocks were airlines. But that was then and this is now. And now Berkshire counts holdings in the four major airlines, but Southwest (NYSE:LUV) could ultimately be the one that gets bought out.Things have changed a lot for the industry. Thanks to deregulation and the wave of mergers, the number of airlines has shrunk in the U.S. That has provided the remaining ones with larger operating footprints and better profit profiles. Additionally, dropping oil prices have reduced one of the biggest costs for the sector. That's what initially drew Buffett into the sector in the first place.Why Southwest will get the love is that it the airline checks a lot of boxes for Buffett.For one thing, the corporate culture at LUV is top notch and is still run by early insiders and founders. Secondly, it's moat as a carrier is deeply entrenched and many low-cost competitors have difficulty competing. Finally, the top-notch carrier may be cheap. * 4 Big Tech Stocks in Major Trouble LUV cut its guidance twice in the last two months thanks to woes over canceled flights. Southwest flies almost exclusively 737 planes -- though not exclusively 737 Max planes. With that, shares have dropped and now trade for just 10 times free cash flows. That's a very juicy figure and could get Buffett to just buy out the stock. Moody's Corporation (MCO)Businesses that produce plenty of cash flows because they have no overhead are something Buffett likes as well. So, when you combine with this with an irreplaceable moat, you know Buffett is 100% onboard. This could help explain his attraction to Moody's Corporation (NYSE:MCO).Moody's -- along with rival S&P Global (NYSE:SPGI) -- provides credit ratings, research, and risk analysis services. And as one of the three main ratings agencies, investors, banks and other customers rely on MCO to make their investment decisions. This includes BRK. In fact, a company can't issue a bond without a ratings agency giving it it's blessing.The best part is that Moody's only real overhead is salary. That leads to plenty of cash generation and mega-sized margins for its products. This year, Moody's estimates that it will generate more than $1.6 billion in free cash flows. Meanwhile, the firm has been more than happy to share those cash flows with investors. Over the last five years, MCO has managed to grow its dividend by an average of 12%. Currently, the stock yields 1.03%.These factors are some of the reasons why Buffett and Berkshire own a hefty slog of Moody's shares.Add in its growth potential from side analytic business and the need for robust credit research and there's a good chance that Buffett could finally take the firm private.Disclosure: At the time of writing, Aaron Levitt did not hold a position in any of the stocks mentioned. More From InvestorPlace * 7 A-Rated Stocks That Are Under $10 * 7 Stocks That Are Soaring This Earnings Season * 5 Biotech Stocks for a Long-Lived Portfolio * 10 Times Apple's Hardware Failed Consumers -- And Hurt Its Business Compare Brokers The post 5 Elephant-Sized Companies Warren Buffett Could Buy appeared first on InvestorPlace.
Watsco's (WSO) Q1 earnings meet analysts' expectation but revenues miss the same due to unfavorable weather experienced by the company in certain markets served.
The e-commerce giant's entry into the industrial-supply market appears to have curtailed margin at traditional companies -- which is bad news for the industry's valuation.
WINONA, Minn., April 18, 2019 -- Fastenal Company (Nasdaq:FAST) announced today that its board of directors approved a two-for-one stock split of the Company's outstanding.
As an industrial supplier, Fastenal understands that to grow rapidly, it must increase its presence on manufacturing floors at a brisk pace.
A 2018 survey of CEO pay in 22 countries around the world including the U.S. found that the average CEO was paid $3.55 million annually.Here in Canada, where I live, the average CEO was paid a little more than $7 million. In the UK, it was almost a million higher than Canada.How about the U.S.?InvestorPlace - Stock Market News, Stock Advice & Trading TipsWell, it was the number one country for CEO pay at $14.25 million -- or more than four times the global average. Are U.S. CEOs worth that much -- or that much more than CEOs in other countries? Not by a long shot. But that doesn't stop some professorial types from singing their praises."The efforts of America's highest-earning 1% have been one of the more dynamic elements of the global economy. It's not popular to say, but one reason their pay has gone up so much is that CEOs really have upped their game relative to many other workers in the U.S. economy," stated George Mason University Economics professor Tyler Cowen in his recent book Big Business: A Love Letter to an American Anti-Hero. CEOs might have a more complicated job than they had 20 years ago, but that doesn't justify pay that is 361 times the average U.S. rank-and-file worker. U.S. Congressman Keith Ellison released a report in 2018 that suggested a median employee at Mattel (NYSE:MAT) would have to work at the company for 495 years to earn as much as a CEO's annual pay. Ridiculous. Investors need only to consider one fact. "Since 2008, the 100 companies with the lowest CEO compensation within the S&P 500 index have outperformed the 100 with the highest compensation every year except 2013," Bloomberg reported in March of this year. "The annualized return from 2008 to 2018 was 17.2 percent compared with 8.4 percent."It is clear that investing in companies who are doing a good job cutting the gap between the CEO's pay and the average employee is key to your portfolio's future success. * The Jobs Report Isn't an Effective Metric for the U.S. Economy Here are seven stocks to buy in that vein. Intuitive Surgical (ISRG)Source: Jon Fingas via Flickr (Modified)CEO Pay: $5.1 millionPay Ratio: 32:1The median worker's pay at Intuitive Surgical (NASDAQ:ISRG) is $157,491, the 22nd highest amount of compensation in the S&P 500. It kind of makes sense. Do you really want a bunch of low-paid workers manufacturing the company's da Vinci surgical robotic systems? One wrong move and your hernia repair becomes a one-way ticket to the morgue. I'm facetious, but I think you get my meaning. By having well-paid employees, not only are they likely to be happier; they're probably more productive especially when they realize that the CEO makes just 32 times their pay, about one-tenth the U.S. average. Intuitive Surgical has come a long way from 1999 when it launched the first da Vinci system. At the end of 2018, it had almost 5,000 systems installed; 64% of them in the U.S. with Europe and Asia its next biggest markets, but with plenty of room to grow. The global surgical robotics market is expected to grow by almost 14% annually over the next seven years to $17 billion. ISRG currently has a 17% market share. If it grows that market share to 25% by 2025, it translates into an additional $1.4 billion in revenue. As people age, minimally invasive surgery will become even more critical than it already is. As secular trends go, ISRG is one of the best bets you can make. American Water Works (AWK)Source: Shutterstock CEO Pay: $4.4 millionPay Ratio: 53:1American Water Works (NYSE:AWK) CEO Susan Story is the only woman on this list so if ESG issues are of interest to you; AWK is an excellent stock to consider. As for its business, that's also good. AWK was recently named one of Barron's 100 Most Sustainable U.S. Companies. Also, Bloomberg included AWK on its list of 230 companies for the 2019 Bloomberg Gender-Equality Index (GEI), a group selected for their dedication advancing the cause of women. That's a big deal when you consider that providing equal pay for U.S. women would add $512 billion to the economy on an annual basis. Here's another reason to like the water utility. AWK stock hasn't had a single year with a negative total return delivering a 10-year annualized total return of 20.6%, which goes entirely against the theory that utilities are dull and poor performers over the long haul. * 5 Dividend Stocks Perfect for Retirees Providing water services to more than 14 million people in 46 states, AWK is a stock whose business will never go the way of the Dodo bird. Fastenal (FAST)Source: Shutterstock CEO Pay: $2.0 million Pay Ratio: 58:1If you've owned Fastenal (NASDAQ:FAST) for the past five years, your patience is finally being rewarded after spending four years rangebound between $40-$50. Up 32% year to date through April 15, FAST stock looks like its gallop to $100 is underway. Consider that the supplier of industrial and construction supplies grew revenues and operating profits over the past five years by 49% and 40% to $5.0 billion and $1.0 billion respectively. And for that, its stock went sideways. In the company's Q1 2019 earnings, Fastenal grew the top and bottom lines by double digits. Revenues were up 12.2% on a like-for-like basis, and net earnings rose 11.9% to $0.68 a share. Helping move the needle is its industrial vending machine program. In the first quarter, it signed 5,603, bringing the total number to 83,410, an increase of 13.4% over Q1 2018. Sales at those machines grew in the high teens in the first quarter. And you thought vending machines were a thing of the past. Fastenal is all about customer service. It's got the growth to prove it. Amazon (AMZN)Source: Shutterstock CEO Pay: $1.7 millionPay Ratio: 59:1Say what you will about Amazon (NASDAQ:AMZN) CEO and founder Jeff Bezos, but you can't deny his company's success. A $10,000 investment ten years ago is worth almost $247,000 today. Bezos might be amoral or immoral in your opinion but his ability to deliver what the world's craving is astonishing. Everything Amazon does is to please the customer. In Bezos' annual letter to shareholders, he mentions the word customer on 49 occasions. "Much of what we build at AWS is based on listening to customers. It's critical to ask customers what they want, listen carefully to their answers, and figure out a plan to provide it thoughtfully and quickly (speed matters in business!). No business could thrive without that kind of customer obsession. But it's also not enough. The biggest needle movers will be things that customers don't know to ask for," the CEO wrote. * 7 Stocks to Buy for Spring Season Growth How many CEOs do you know that think like this? I can count the number on two hands. He might be an a**hole in the minds of many, but he's a brilliant one, cut from the same cloth as Elon Musk. Garmin (GRMN)Source: slgckgc via Flickr (modified)CEO Pay: $2.4 millionPay Ratio: 76:1The cream always rises to the top. Garmin (NASDAQ:GRMN) is one of those companies that seems to fly under the radar despite being a reasonably large company. If you own Fitbit (NASDAQ:FIT) stock, however, you're likely more than a little aware of Garmin. In the most recent quarter, Garmin delivered boffo earnings. Since announcing Q4 2018 results February 20, GRMN stock is up 24%. A key highlight from earnings was its guidance for 2019. Analysts were expecting earnings of $3.52 a share on $3.43 billion in revenue. Garmin CEO Cliff Pemble's outlook is for $3.70 a share on the bottom line and $3.50 billion on the top line. "2018 was another remarkable year of revenue and operating income growth driven by strong performance in our aviation, marine, outdoor and fitness segments," Pemble said in its news release. "Entering 2019, we see many opportunities ahead and believe that we are well positioned to seize these opportunities with a strong lineup of products across all of our segments."Hopefully, you're beginning to see a trend. Companies that keep the pay ratio low tend to deliver strong long-term results. Since Pemble became CEO in January 2013, GRMN stock has generated a 19.7% annualized total return for shareholders, 440 basis points greater than the SPDR S&P 500 ETF (NYSEARCA:SPY). Simon Property (SPG)Source: m01229 via Flickr (Modified)CEO Pay: $4.8 million Pay Ratio: 88:1A lot of investors might have a problem owning shopping malls. I certainly wouldn't. But they've got to be good. They can't be Class C malls with no-name retailers filling the place. That's a recipe for disaster. Zacks recently wondered if Simon Property's (NYSE:SPG) efforts were enough to battle the retail blues. Are we seriously still having that discussion in 2019. Well, it turns out there are a lot of crappy retailers still operating including Sears. "The deepening of the relationship with existing tenants, and the launch of its online retail platform, weaved with an omni-channel strategy, will likely be accretive to Simon Property's long-term growth," wrote Zack's equity research team April 8."In fact, the company is investing billions and actively restructuring its portfolio, aiming at premium acquisitions and transformative redevelopments. The transformational plans include the addition of hotels, restaurants, residences and luxury stores."The fact is, very few retail mall owners have the vision of the Simon family. They've been doing this a long time. They're more than capable of rolling with the punches. * 10 S&P 500 Stocks to Weather the Earnings Storm Good brick-and-mortar retail isn't disappearing. Just the crappy kind is. Know the difference. O'Reilly Automotive (ORLY)Source: JJBers via Flickr (modified)CEO Pay: $2.9 millionPay Ratio: 141:1O'Reilly Automotive (NASDAQ:ORLY) makes it on to the list despite hitting a 26-year high of $398.41 in early April and carrying on past $400 in the days that followed. Up 19% year to date through April 15, ORLY's only had one year of negative returns since 2009. As a result, you're looking at a 10-year annualized total return of 27.3%, almost double the S&P 500. In 2018, the retailer of aftermarket auto parts had same-store sales growth of 3.8%, at the top of its estimate for the year, the company's 26th year with an increase. In 2019, it expects same-store sales growth of 3%-5%. This past year it opened 200 net new stores in 36 states. It plans to open as many as 210 in 2019. It now has 5,219 stores across the U.S. On the bottom line, O'Reilly increased its EPS by 27% over 2017 to $16.10, the 10th consecutive year with a 15% increase in earnings. In 2019, it expects EPS of at least $17.37. Given its track record, you should expect more than that. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 Dividend Stocks Perfect for Retirees * 7 Reasons the Stock Market Rally Isn't Over Yet * 10 S&P 500 Stocks to Weather the Earnings Storm Compare Brokers The post 7 Companies That Are Closing the CEO-Worker Wage Gap appeared first on InvestorPlace.
Today we'll look at Fastenal Company (NASDAQ:FAST) and reflect on its potential as an investment. Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business c...
STOCKSTOWATCHTODAY BLOG Watching paint dry. The Dow Jones Industrial Average was up a little. And then it was down a little, and that is where it finished the day. A Brexit extension didn’t move the market, and neither did the fewest jobless claims in 49 years.
After opening mostly up Thursday, stocks drifted lower late in the day in listless trading, despite reports showing continued strong job growth and underlying low core inflation.
Stocks that moved substantially or traded heavily on Thursday: Tesla Inc., down $7.64 to $268.42 The electric car maker and partner Panasonic are putting on hold plans to expand their Gigafactory, according ...
Fastenal earnings just beat Q1 views for the industrial supplier. The IBD 50 stock rose to a record high.