NASDAQ:FAST
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Fastenal Company (FAST-Q) is recognized as a quality business but faces challenges related to its sensitivity to the industrial capital expenditure cycle. One expert noted their decision to sell the stock in favor of investing in 3M due to concerns about the economy potentially not experiencing a soft landing. The stock currently trades at a forward price-to-earnings ratio of 32 times, which is significantly higher than 3M's valuation of 17 times. This discrepancy suggests that Fastenal may be overvalued in comparison to a more diversified business like 3M. Overall, while Fastenal has strengths, the economic context and valuation metrics raise caution among analysts.
The sold it over the summer. They report next week, A quality business but economically sensitive to the industrial capex cycle. Not a bad company. He sold it to buy more 3M. A reason to sell is that we may not see the soft landing to the economy. It trades at 32x forward PE vs.17x PE in 3M, which runs a more diversified business.
If you want a case study for the anatomy of exceptional dividend growth, this would be the company. Back in 2005 they had a low payout ratio and were growing top and bottom lines, and then they increased the payout ratio. Their dividend in 2005 went to $0.16 a share, and then went to $1 per share in 2014, a 23% dividend growth per share in 10 years. The dividend is secure although it is growing at a slower rate.
Fastenal Company is a American stock, trading under the symbol FAST-Q on the NASDAQ (FAST). It is usually referred to as NASDAQ:FAST or FAST-Q
In the last year, 2 stock analysts published opinions about FAST-Q. 1 analyst recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Fastenal Company.
Fastenal Company was recommended as a Top Pick by on . Read the latest stock experts ratings for Fastenal Company.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
2 stock analysts on Stockchase covered Fastenal Company In the last year. It is a trending stock that is worth watching.
On 2025-10-20, Fastenal Company (FAST-Q) stock closed at a price of $42.99.
Despite Fastenal's slightly weaker-than-expected 3Q results, market share gains should continue to drive above-market growth, even though signs of a short-cycle industrial recovery remain elusive. The 3Q earnings miss was primarily due to higher operating costs, reflecting a reset of the bonus program, and softer-than-anticipated pricing. Fastenal delayed product pricing by about 30 days to strengthen customer relations, which resulted in a 240-270-bp top-line contribution in 3Q, below management's 300-500-bp expectation. The company’s share gains and gross margin were positives in 3Q, though higher costs and less favorable pricing are likely to pressure near-term profitability. Guidance implies 4Q gross margin will decline about 70 bps sequentially to 44.6%, 40 bps below estimates. The sector has some economic sensitivity, but FAST is up 363% in the past ten years and one of the better names. It is not cheap at 38X earnings which would be our main objection. We would be OK with a starter buy position.
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