Fastenal Company Sees Strong Performance Amid Market Growth
With a market cap of around $46 billion, Fastenal Company (FAST) stands out as a prominent wholesale distributor in the industrial and construction sectors. Primarily operating through its network of company-owned stores, Fastenal provides a wide array of products including threaded fasteners, miscellaneous hardware, tools, cutting tools, and safety supplies. They cater to various industries, ranging from manufacturing and construction to government and energy.
Over the past 52 weeks, shares of the Winona, Minnesota-based company have significantly outperformed the broader market. FAST has returned 19.7% during this period, contrasting with the 12.7% increase in the S&P 500 Index ($SPX). Additionally, Fastenal shares are up 12.1% year-to-date, whereas the SPX has seen only a slight gain.
Solid Quarterly Performance
Zooming in on recent performance, the maker of nuts and bolts achieved a 6.4% increase in share price on April 11, following the announcement of Q1 2025 revenue of around $2 billion, which slightly exceeded analysts’ expectations. Profit matched Wall Street estimates at $0.52 per share. This success came despite weaker demand in manufacturing and construction, bolstered by growth in higher-value contracts. Notably, the company reported increased spending from customers exceeding $10,000 monthly and a modest uptick among lower-spending customers.
Future Outlook and Analyst Ratings
Looking ahead, analysts anticipate that for the fiscal year ending December 2025, FAST’s EPS is projected to grow 8.5% year-over-year to $2.17. The company’s earnings surprise history is a mixed bag; it has met consensus estimates in three out of the last four quarters while falling short on one occasion. Among the 14 analysts covering the stock, the consensus rating is a “Hold,” based on three “Strong Buy” ratings, 10 “Holds,” and one “Strong Sell.”
Analyst Insights
On May 7, analyst Michael E. Hoffman from Stifel Nicolaus maintained a “Buy” rating on Fastenal Company, reaffirming a price target of $85. Currently, FAST is trading slightly above the mean price target of $79.80. The highest price target on the Street is set at $88, suggesting a potential upside of 9.5% from current price levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
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