What's Going On With Fastenal Stock?

Fastenal Company FAST shares are trading slightly higher Monday. BofA Securities analyst Sabrina Abrams initiated coverage on Fastenal with a Buy rating and announced a price target of $85.

The Details:

The BofA analyst highlighted Fastenal's double-digit growth in national customer contract counts in the first and second quarters of 2024, reflecting the success of the company's renewed focus on winning contracts with large customers. Abrams said she expects the growth to continue through the fourth quarter and into 2025 and 2026. 

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Abrams also noted Fastenal's sales volumes have outperformed even as offshoring slowed industrial production in its markets. The analyst sees Fastenal as positioned to benefit as companies return to reshoring and expects sales volumes to accelerate further in the long-term. 

FAST Q3: Fastenal is set to report its third-quarter financial results on Friday before the opening bell.  Analysts expects the company to report earnings of 51 cents per share and quarterly revenue of $1.915 billion, according to estimates from Benzinga Pro.

FAST Stock Prediction 2024:

When buying a stock for a longer time horizon, it is important for investors to assess where they think the stock is headed in the future.

When mapping a stock's future trajectory, investors should consider factors including the future earnings expectations and expected performance against a benchmark.

Fastenal’s revenue has grown at an average rate of 7.73% annually over the past 5 years. The average 1-year price target from analysts is $71.6, representing an expected 1.94% upside in 2025.

While past performance is not a guarantee of future results, investors should also look at a stock's historical performance when compared to both a benchmark index and the company's peers. Shares of Fastenal have seen an annualized return of 12.9%, outperforming the S&P500 index by 3.56%. This compares to 12.1% growth in the overall Industrials sector. Fastenal has a beta of 1.2.

FAST Price Action: According to Benzinga Pro, Fastenal shares are up 0.44% at $70.49 at the time of publication Monday.

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