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Fastenal Company (FAST), headquartered in Winona, Minnesota, offers various industrial supplies, including fasteners, safety, and metal-cutting products. Valued at $36.31 billion by market cap, the company serves manufacturing, construction, and state and local government customers through more than 3,400 in-market locations in 25 countries.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and FAST perfectly fits that description, signifying its substantial size, stability, and dominance in its industry.
The leading industrial and construction products supplier has fallen 19.9% from its 52-week high of $79.04, which it hit on Mar. 21. Shares of FAST are down 18.1% over the past three months, underperforming the broader Industrials ETF Vanguard’s (VIS) 3.3% losses over the same time frame.
Longer term, FAST shares have risen 8.3% over the past year, and in 2024, the stock is down 2.2%. By contrast, the VIS is up 7.1% on a YTD basis and 16.5% over the past 52 weeks.
To confirm the bearish price trend, the stock has been trading below its 50-day moving average since mid-April and 200-day moving average since late June.
On Jun. 6, FAST shares closed down more than 1% after Bloomberg Intelligence said that the company’s daily sales rose 1.5% in May, 1% below the historical average. If the sales trend continues, its Q2 revenue may increase less than 2% to $1.92 billion, 2% below the consensus estimate.
On Apr. 11, FAST closed down more than 6% after reporting its Q1 results. Its net sales of $1.90 billion, falling short of the consensus estimate of $1.91 billion. The company’s EPS stood at $0.52, missing the Wall Street estimates of $0.53.
Rival MSC Industrial Direct Co., Inc. (MSM) has underperformed FAST. MSM stock has declined 19.6% in the past 52 weeks and is down 23% on a YTD basis.
After its recent underperformance compared to the industrial sector, analysts are cautious about FAST’s prospects. The stock has a consensus rating of “Hold” from the 13 analysts covering it, but the mean price target of $68.90 is an 8.8% premium to current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
