Fastenal Company Shows Mixed Q3 Earnings Amid Competitive Landscape
Fastenal Company (FAST), valued at a market cap of $45.4 billion, specializes in wholesale distribution of industrial and construction supplies. Based in Winona, Minnesota, Fastenal primarily generates revenue from its fastener product line, distributed mainly through its company-owned stores across North America.
Fastenal’s Market Standing and Recent Performance
As a company classified as “large-cap” due to its market cap exceeding $10 billion, Fastenal operates within a competitive industrial supplies sector. Beyond fasteners like screws, nuts, bolts, and threaded rods, the company also offers third-party logistics, inventory management, manufacturing, and tool repair services.
Stock Performance: Ups and Downs
Currently, FAST trades 6.9% below its 52-week high of $84.88, which was hit on November 11. In the past three months, FAST shares have surged by 13.2%, outperforming the broader S&P 500 Index’s ($SPX) return of 8.1% for the same period.
Looking at longer-term trends, the stock has gained 23.7% over the past 52 weeks, though it still underperformed compared to the S&P 500’s 30.3% returns. Year-to-date, FAST shares are up 22%, falling short of the S&P’s 26.9% increase.
Moving Averages and Earnings Report
To confirm its recent upward trend, FAST has consistently traded above its 200-day and 50-day moving averages since early September. On October 11, FAST’s shares jumped 9.8% despite reporting mixed Q3 earnings. The company’s adjusted earnings per share (EPS) of $0.52 remained stable year-over-year and met consensus estimates. However, revenue grew by only 3.5% annually to $1.91 billion, slightly missing Wall Street’s expectations. Strong sales from larger clients and new onsite locations were somewhat offset by operational disruptions caused by Hurricane Helene in the Southeast and Atlantic Coastal regions.
Competitive Landscape and Analyst Sentiment
Compared to its competitor, W.W. Grainger, Inc. (GWW), which has seen a remarkable 39.9% increase over the last 52 weeks and nearly 38.7% year-to-date, Fastenal’s growth appears more subdued.
Analyst Ratings and Price Targets
Despite Fastenal’s recent stock performance, analysts maintain a cautious outlook. It holds a consensus rating of “Hold” among the 15 analysts covering it, with current trading above the average price target of $78.92.
On the date of publication,
Neharika Jain
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
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
