Cracking The Code: Understanding Analyst Reviews For Fastenal

Across the recent three months, 4 analysts have shared their insights on Fastenal FAST, expressing a variety of opinions spanning from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $77.5, a high estimate of $85.00, and a low estimate of $73.00. This current average has increased by 10.71% from the previous average price target of $70.00.

Investigating Analyst Ratings: An Elaborate Study

The standing of Fastenal among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Fastenal. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Fastenal compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Fastenal's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Fastenal's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on Fastenal analyst ratings.

Get to Know Fastenal Better

Fastenal opened its first fastener store in 1967 in Winona, Minnesota. Since then, Fastenal has greatly expanded its footprint as well as its products and services. Today, Fastenal serves its 400,000 active customers through approximately 1,600 branches, over 1,700 on-site locations, and 14 distribution centers. Since 1993, the company has added other product categories, but fasteners remain its largest category at about 30%-35% of sales. Fastenal also offers customers supply-chain solutions, such as vending and vendor-managed inventory.

Financial Insights: Fastenal

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

Positive Revenue Trend: Examining Fastenal's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 3.72% as of 31 December, 2023, showcasing a substantial increase in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Net Margin: Fastenal's net margin excels beyond industry benchmarks, reaching 15.15%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Fastenal's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 7.82%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Fastenal's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 5.88%, the company showcases efficient use of assets and strong financial health.

Debt Management: With a below-average debt-to-equity ratio of 0.16, Fastenal adopts a prudent financial strategy, indicating a balanced approach to debt management.

What Are Analyst Ratings?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

This article was generated by Benzinga's automated content engine and reviewed by an editor.