Fastenal, Grainger, and MSC Industrial all profit from the same factory supply chain, but the dividend each pays comes with a very different tradeoff between yield, safety, and growth potential.
Factories and job sites buy cutting tools, fasteners, gloves, and safety glasses every week, regardless of the economy. Three distributors handle much of that resupply: Fastenal (NASDAQ:FAST | FAST Price Prediction), W.W. Grainger (NYSE:GWW) and MSC Industrial Direct (NYSE:MSM). Because customers must keep reordering, cash flow is steady, and that cash pays the dividends. The record shows it. Grainger’s dividend history shows a higher quarterly payout in every calendar year from 1999 through 2026. The three run similar businesses but offer different deals for income investors: one is a fast dividend grower with a small yield, one sits in the middle, and one pays the most but has the least room to spare.
Fastenal: A Near 2% Yield Backed by Record Operating Profit Fastenal pays a quarterly dividend of $0.26 per share. The next one goes ex-dividend on October 28, 2026, and gets paid on November 25, 2026. At the annualized rate of $1.04 and a recent price of $52.80, the forward yield is about 1.97%.
Dividend safety: Over the last 12 months, Fastenal paid $0.96 per share in dividends and earned $1.24 per share, so the payout ratio is about 77%. Cash flow tells the same story. Third-quarter free cash flow was about $350 million, and dividends cost $298 million, which means dividends took about 85% of free cash flow. Operating cash flow was 105% of net income. The balance sheet is conservative: $1.3452B of total liabilities against $4.1492B of shareholders’ equity. Fastenal’s dividend record goes back to February 1999. The quarterly rate rose from $0.22 in October 2025 to $0.24 in January 2026, then to $0.26 in July 2026, so shareholders got two raises in less than a year.
Bull case: Fastenal is winning business from large contract customers. Contract sales grew 18.8% and now make up 76.5% of revenue. Operating margin widened 90 bps to 21.5%, and return on invested capital reached 32.5%. The chief executive called the quarter’s jump in operating income “the largest year-over-year increase in a single quarter in Fastenal’s history.” Those gains are what pay for future dividend raises.
Risk: With about three quarters of earnings already going out as dividends, Fastenal has little room left to raise the payout faster than profits grow. Management also said the boost from price increases is fading as the company laps earlier pricing actions. Future dividend growth will depend on sales volume.
Grainger: Dividend Raises Every Year Since 1999, With a Low Payout Ratio Grainger pays $2.49 per quarter. Its annualized dividend of $9.96 against a share price of $1,360.08 works out to a forward yield of about 0.73%, the lowest of the three.
Dividend safety: This is the strongest dividend in the group. Trailing dividends of $9.27 per share compare with trailing EPS of $39.21, a payout ratio of roughly 24%. Even at the low end of Grainger’s raised adjusted EPS guidance of $45.50, the current dividend uses only about 22% of earnings. Free cash flow was $569M in the first quarter and $333M in the second, while first-quarter dividends cost $108M. Management expects full-year operating cash flow of $2.25B to $2.4B. Shareholders’ equity stood at $4.513B against $9.618B in total assets. The payment history shows a higher quarterly rate in every calendar year from 1999 onward. The latest step was from $2.26 to $2.49, a 10% increase the company disclosed.
Bull case: Grainger keeps raising its own targets. Second-quarter diluted EPS of $12.01 came in ahead of the $11.30 estimate, gross margin widened to 39.5%, and management raised full-year net sales guidance to $19.4B to $19.7B. The chief executive said the demand backdrop has “turned from negative for several years to clearly positive.” Buybacks of $975M to $1.05B planned for the year reduce the share count, which makes each future raise cheaper to fund.
Risk: The starting yield is small. Shares rose 41.66% over the past year and trade at about 25x forward earnings, so income buyers pay a premium today and must rely on years of raises for their payout to grow into something meaningful.
MSC Industrial Direct: The Highest Yield of the Three After a Sharp Pullback MSC pays $0.89 per quarter, with the next payment due November 25, 2026. The annualized rate of $3.56 against a price of $114.23 gives a forward yield of about 3.12%. One reason the yield is this high: shares fell 12.6% over the past week, including the company’s fiscal fourth-quarter report.
Dividend safety: Trailing dividends of $3.48 compare with fiscal 2026 adjusted EPS of $4.69, a payout ratio of about 74%. Full-year free cash flow was $225.2M. MSC returned about $208 million to shareholders, including $13.967M of buybacks, which puts dividends at roughly 86% of free cash flow. Net debt is about $412 million, or roughly one times EBITDA. The regular quarterly dividend has risen from $0.75 to $0.79, $0.83, $0.85, $0.87, and $0.89, one raise each fall. Special payouts of $5.75 and $3.50 in 2020 show the board has handed back extra cash before.
Bull case: The business is recovering. Core customer growth of about 10% was the company’s “strongest in more than three years,” adjusted operating margin reached 10.9%, and adjusted EPS of $1.45 came in ahead of the $1.41 estimate. Management guided first-quarter average daily sales growth to +9.5% to +10.5% and is working toward its goal of returning to mid-teens operating margins. If margins expand, the payout ratio comes down.
Risk: There is little spare cash. A $42 million impairment tied to the abandoned Digital Core systems program cut GAAP EPS to $0.85 for the quarter. Management also expects free cash flow to equal only 80% to 90% of net income in fiscal 2027, so the dividend is covered with only a modest cushion.
Three Ways to Collect From the Same Supply Chain All three companies earn money the same way: from factories and contractors that keep reordering parts, tools, and safety gear, and all three pay dividends from that steady cash. Grainger is the dividend compounder: it has raised its dividend every year since 1999, and its payout ratio is under 25%. Fastenal sits in the middle, with a yield near 2% and a dividend that has been rising alongside record operating profit. MSC pays the most of the three, but its dividend has the smallest margin for error. For investors who want to stack this kind of resupply-economics name next to companies with even longer streaks, we ranked ten of the market’s longest-tenured dividend raisers by valuation in a free report you can grab here.
Contact [email protected] for any questions or corrections.
Have you assessed how the international operations of Fastenal (FAST - Free Report) performed in the quarter ended September 2026? For this maker of industrial and construction fasteners, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.
In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. For investors, the key is to grasp how reliant a company is on overseas markets, as this provides insights into the durability of its earnings, its ability to exploit different economic cycles, and its overall growth capabilities.
Being present in foreign markets serves as protection against local economic declines and helps benefit from more rapidly expanding economies. Yet, such expansion also introduces challenges related to currency fluctuations, geopolitical uncertainties and varied market behaviors.
While delving into FAST's performance for the past quarter, we observed some fascinating trends in the revenue from its foreign segments that are commonly modeled and observed by analysts on Wall Street.
The company's total revenue for the quarter stood at $2.46 billion, increasing 15.5% year over year. Now, let's delve into FAST's international revenue breakdown to gain insights into the significance of its operations beyond home turf.
Decoding FAST's International Revenue TrendsOther foreign countries accounted for 3.5% of the company's total revenue during the quarter, translating to $86.1 million. Revenues from this region represented a surprise of +13.48%, with Wall Street analysts collectively expecting $75.87 million. When compared to the preceding quarter and the same quarter in the previous year, Other foreign countries contributed $83.4 million (3.5%) and $70.6 million (3.3%) to the total revenue, respectively.
Of the total revenue, $342.1 million came from Canada and Mexico during the last fiscal quarter, accounting for 13.9%. This represented a surprise of +0.92% as analysts had expected the region to contribute $338.98 million to the total revenue. In comparison, the region contributed $333.7 million, or 14%, and $284.8 million, or 13.4%, to total revenue in the previous and year-ago quarters, respectively.
International Market Revenue ProjectionsThe current fiscal quarter's total revenue for Fastenal, as projected by Wall Street analysts, is expected to reach $2.36 billion, reflecting an increase of 16.4% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: Other foreign countries is anticipated to contribute 3.2% or $76.14 million, and Canada and Mexico 13.6% or $321.6 million.
For the full year, a total revenue of $9.28 billion is expected for the company, reflecting an increase of 13.1% from the year before. The revenues from Other foreign countries and Canada and Mexico are expected to make up 3.2%, and 13.9% of this total, corresponding to $293.82 million, and $1.29 billion, respectively.
Wrapping UpRelying on international markets for revenues, Fastenal faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.
In an era of growing international ties and escalating geopolitical disputes, financial analysts on Wall Street pay keen attention to these developments to fine-tune their earnings estimations for businesses operating across borders. It's important to note, however, that a range of additional variables, like a company's local market status, also play a crucial role in shaping these forecasts.
At Zacks, a company's changing earnings outlook is given considerable attention due to its proven, strong influence on a stock's price performance in the near term. The connection here is straightforward and positive: when earnings estimates are revised upward, the stock price generally follows suit, increasing as well.
Our proprietary stock rating tool, the Zacks Rank, with its externally validated exceptional track record, harnesses the power of earnings estimate revisions to serve as a dependable measure for anticipating the short-term price trends of stocks.
Currently, Fastenal holds a Zacks Rank #3 (Hold), signifying its potential to match the overall market's performance in the forthcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Exploring Recent Trends in Stock PriceThe stock has witnessed an increase of 2.8% over the past month versus the Zacks S&P 500 composite's an increase of 0.7%. In the same interval, the Zacks Industrial Products sector, to which Fastenal belongs, has registered a decrease of 3.2%. Over the past three months, the company's shares saw an increase of 7.1%, while the S&P 500 increased by 3.4%. In comparison, the sector experienced a decline of 5.1% during this timeframe.
It's always fascinating to hear what industrial supply companies like Fastenal (FAST +1.27%) say about the economy and trends in their end markets.
Their sales are relatively short-cycle, meaning there's a very short period between when a customer sees an increase in demand and when they use or order Fastenal's industrial fasteners, safety products, and a wide range of industrial products. That makes them ideal barometers of current market conditions and gives investors a great early read on earnings season.
Fastenal and manufacturing's end-market growth
This continues to be a year of recovery for the U.S. manufacturing sector, with the Institute for Supply Management's Purchasing Managers' Index (PMI) indicating solid expansion every month this year, having spent the 2023 to 2025 period almost entirely in contraction in the U.S.
That recovery was further confirmed in Fastenal's results:
Daily sales growth in heavy manufacturing (Fastenal's core end market) grew 20.2% year over year.
Daily sales growth in all other manufacturing grew by 13.2%.
Daily sales growth in all other end markets grew by 12.3 %.
However, it's important to dig deeper into the source of the strength, and there's some critical information here for the upcoming earnings season.
FAST Fastenal$51.02+$0.64 (+1.27%)
NASDAQ · As of 4:00 PM ET 10/16/26
Which sectors are looking strong in the current earnings season?
Based on what Fastenal's management said on its third-quarter earnings call, you can generally put these sectors into three buckets.
In the first bucket, strong end markets include machined products, aerospace, and industrial equipment, according to CFO Max Tunnicliffll. He also noted, "Growth opportunities were strongest in data centers."
Image source: Getty Images.
The second bucket contains end markets with more balanced conditions. Nonresidential construction continued to grow, and construction growth overall "remains healthy," according to CEO Jeffery Watts. Still, growth did slow down from an unusually strong second quarter -- something to look out for when construction-related stocks report. In addition, traditional manufacturing and automotive are relatively weaker than the heavy manufacturing groups in the first bucket.
Finally, the third bucket contains some relatively weak areas, such as agriculture and food.
What it means to investors
Overall, this is a bullish report from Fastenal, indicating broad-based strength in the industrial sector heading into the end of the year. If aerospace, data center construction, machine parts, and industrial equipment customers are ramping orders from Fastenal, it's because they continue to strengthen in end demand, and that indicates that companies like GE Aerospace and RTX in aerospace, Illinois Tool Works and Rockwell Automation in industrial equipment, and Comfort Systems USA in data center mechanical and electrical contracting will report good quarters.
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Comfort Systems USA, Fastenal, GE Aerospace, and RTX. The Motley Fool recommends Illinois Tool Works and Rockwell Automation. The Motley Fool has a disclosure policy.
B. Riley Wealth Advisors Inc. acquired a new stake in shares of Fastenal Company (NASDAQ:FAST – Free Report) in the third quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund acquired 10,958 shares of the company’s stock, valued at approximately $543,000.
Several other large investors have also bought and sold shares of FAST. Evergreen Advisors LLC purchased a new stake in Fastenal during the first quarter valued at approximately $26,000. Mowery & Schoenfeld Wealth Management LLC bought a new position in shares of Fastenal in the second quarter worth approximately $26,000. MV Capital Management Inc. purchased a new position in shares of Fastenal during the 4th quarter valued at $29,000. Raleigh Capital Management Inc. lifted its position in shares of Fastenal by 69.6% in the first quarter. Raleigh Capital Management Inc. now owns 748 shares of the company’s stock valued at $35,000 after acquiring an additional 307 shares in the last quarter. Finally, Frazier Financial Advisors LLC purchased a new stake in Fastenal in the 2nd quarter worth $38,000. 81.38% of the stock is owned by hedge funds and other institutional investors.
Fastenal News Roundup Here are the key news stories impacting Fastenal this week:
Positive Sentiment: Q3 results exceeded expectations: Revenue rose 15.5% year over year to $2.46 billion, while EPS increased to $0.35 from $0.29 and topped the $0.34 consensus estimate. Operating margin improved to 21.5%, reflecting better selling and administrative expense leverage. Fastenal Q3 Results Highlight Margin Power Positive Sentiment: Analysts raised price targets: Robert W. Baird increased its target from $59 to $60 and maintained an Outperform rating, implying additional upside based on the stock’s recent trading level. Other analysts also lifted forecasts following the earnings beat. Baird Raises Target for Fastenal Positive Sentiment: Growth initiatives remain constructive: Market-share gains, digital expansion and continued adoption of FASTBin and FASTVend vending systems support Fastenal’s longer-term growth outlook. Its dividend and capital-return profile also remains attractive to income-focused investors. FAST Q3 Deep Dive Negative Sentiment: Investors remain concerned about the quality and pace of growth: September sales reportedly missed expectations, gross margin declined to 44.8% from 45.3%, and Fastenal reduced its 2026 weighted device-signing target to 27,000–29,000 from 28,000–30,000. Analysts at DA Davidson maintained a Neutral view, while some estimates were cut after the report. Fastenal Analyst Cuts Estimates Fastenal Trading Up 1.3% Shares of FAST stock opened at $51.02 on Friday. The stock has a 50 day simple moving average of $50.35 and a 200-day simple moving average of $47.52. Fastenal Company has a 1-year low of $38.97 and a 1-year high of $52.92. The company has a market cap of $58.55 billion, a price-to-earnings ratio of 41.15, a PEG ratio of 3.12 and a beta of 0.69. The company has a debt-to-equity ratio of 0.01, a current ratio of 3.93 and a quick ratio of 2.21. Fastenal (NASDAQ:FAST – Get Free Report) last released its earnings results on Wednesday, October 14th. The company reported $0.35 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.34 by $0.01. Fastenal had a net margin of 15.62% and a return on equity of 35.13%. The business had revenue of $2.46 billion during the quarter, compared to analyst estimates of $2.44 billion. During the same quarter in the prior year, the firm earned $0.29 earnings per share. The company’s revenue for the quarter was up 15.5% compared to the same quarter last year. On average, equities research analysts expect that Fastenal Company will post 1.27 EPS for the current fiscal year.
Fastenal Dividend Announcement The firm also recently announced a quarterly dividend, which will be paid on Wednesday, November 25th. Stockholders of record on Wednesday, October 28th will be given a dividend of $0.26 per share. This represents a $1.04 annualized dividend and a dividend yield of 2.0%. The ex-dividend date of this dividend is Wednesday, October 28th. Fastenal’s dividend payout ratio (DPR) is 83.87%.
Analysts Set New Price Targets A number of equities analysts have recently commented on FAST shares. Rothschild & Co Redburn set a $55.00 target price on Fastenal and gave the stock a “buy” rating in a report on Monday, July 13th. Wolfe Research assumed coverage on Fastenal in a research report on Tuesday, September 15th. They set an “underperform” rating and a $51.00 target price on the stock. Morgan Stanley increased their price target on Fastenal from $48.00 to $52.00 and gave the company an “equal weight” rating in a report on Thursday, July 16th. DA Davidson set a $51.00 price target on Fastenal and gave the stock a “neutral” rating in a research note on Tuesday. Finally, Sanford C. Bernstein restated an “underperform” rating and set a $47.00 price objective (up from $42.00) on shares of Fastenal in a report on Thursday. Six investment analysts have rated the stock with a Buy rating, five have given a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $50.83.
Get Our Latest Analysis on FAST
Insider Transactions at Fastenal In other news, Director Rita Heise sold 34,964 shares of Fastenal stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $50.05, for a total transaction of $1,749,948.20. Following the completion of the sale, the director directly owned 20,000 shares in the company, valued at $1,001,000. The trade was a 63.61% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Michael J. Ancius sold 3,000 shares of Fastenal stock in a transaction dated Tuesday, July 28th. The shares were sold at an average price of $49.00, for a total value of $147,000.00. Following the completion of the transaction, the director directly owned 58,690 shares in the company, valued at $2,875,810. This represents a 4.86% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.28% of the stock is owned by corporate insiders.
Fastenal Profile (Free Report)
Fastenal Company is a distributor of industrial and construction supplies serving businesses, contractors, manufacturers and other organizations. Its product offerings include fasteners such as bolts, nuts and screws, as well as safety equipment, tools, cutting tools, material-handling products, electrical and plumbing supplies, and maintenance and repair items.
The company sells products through a network of branch locations, onsite customer facilities, industrial vending machines and digital platforms.
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On its third-quarter 2026 earnings call, held on Oct. 14, 2026, Fastenal (FAST +1.27%) announced that sales grew 15.5%, while earnings grew faster than sales. Market share gains in large-account contracts are driving durable operating leverage for the industrial distributor. Three takeaways from the call highlight how this model compounds.
Contract customers under multi-site supply agreements now represent over three-quarters of net sales. Fastenal is expanding daily sales with these larger sites faster than the broader industrial market.
Contract customers now represent over 76% of sales, and their daily sales grew 18.8%.
-- Jeffery Watts, President and Chief Executive Officer2. Digital Replenishment Technology Deepens Customer RetentionThe company continues to deploy Fastenal Managed Inventory (FMI), its digital vending and automated bin technology that streamlines customer supply chains. Moving customers to automated ordering embeds Fastenal into daily plant operations and improves fulfillment efficiency.
We need to keep moving customers toward technology-enabled replenishment because it improves service, it strengthens the relationship, and it creates efficiency for both sides.
-- Jeffery Watts, President and Chief Executive Officer3. Workflow Automation Generates Operating Expense LeverageSelling, general, and administrative (SG&A) operating expenses dropped as a percentage of sales because headcount grew less than 1% during the quarter. Specialized digital tools and branch automation allow local teams to manage larger accounts without adding extra personnel.
This reflects productivity, role specialization and the benefits of technology and automation.
-- Max Tunnicliff, Executive Vice President and Chief Financial OfficerLooking AheadIndustrial demand is expanding across heavy manufacturing and data center build-outs, and management isn't hiding its satisfaction with top-line momentum.
Industrial conditions improved further in the third quarter.
-- Max Tunnicliff, Executive Vice President and Chief Financial OfficerFastenal holds structural advantages in its captive delivery fleet, on-site inventory hubs, and digital integration tools. Management continues to focus on price/cost neutrality to balance pricing adjustments against product inflation.
New customer wins create embedded spend, technology deepens those relationships and our scale allows us to grow profitably while continuing to invest.
-- Jeffery Watts, President and Chief Executive OfficerThis article was created using Large Language Models (LLMs) based on The Motley Fool's insights and investing approach. It has been reviewed by our AI quality control systems. Since LLMs cannot (currently) own stocks, it has no positions in any of the stocks mentioned. The Motley Fool has positions in and recommends Fastenal. The Motley Fool has a disclosure policy.
On October 15, 2026, Fastenal Co FAST shares fell 3.1%, bringing the current price to $50.38. The stock has seen a 52-week high of $52.92 and a low of $38.97, indicating some volatility in its trading range over the past year.
GF Value™ verdict: Current price is $50.38, which is 5.4% above the estimated fair value of $47.79.GF Score™ of 96/100, indicating a strong overall performance.Most notable signal: Financial strength rating of 9/10, suggesting robust financial health.Is FAST Overvalued or Undervalued?Fastenal Co's current price of $50.38 sits above the GF Value™ estimate of $47.79, signaling that the stock is overvalued by approximately 5.4%. This valuation is calculated using GuruFocus' proprietary intrinsic-value estimate, which is derived from historical trading multiples, past business growth, and future performance expectations. Being overvalued indicates a potential risk for investors, as the market price may not adequately reflect the company’s intrinsic value, leading to an increased chance of a price correction in the future.
The GF Valuation label categorizes Fastenal as fairly valued, which implies that while it may not be the best entry point for new investors, it also highlights the company’s strong fundamentals. However, with the current price exceeding the GF Value™, caution is warranted as the margin of safety is limited.
How Does FAST's Valuation Compare to Its History?MetricCurrentHistoricalP/E (TTM)40.9x35.2xForward P/E36.0xN/AThe current P/E ratio of 40.9x is significantly above Fastenal's 5-year median P/E of 35.2x, indicating that the stock is trading at a premium compared to its historical valuation. This analysis aligns with the GF Value™ verdict suggesting that the stock may be overvalued, as investors are currently paying more for earnings than they have in the past.
What Does FAST's GF Score™ Tell Us?The GF Score™ evaluates a company's financial strength, profitability, growth potential, valuation, and momentum. Fastenal’s score of 96/100 reflects its strong position in these areas, particularly in profitability and growth.
MetricRatingGF Score™96Financial Strength9/10Profitability10/10Growth10/10Valuation6/10Momentum6/10Fastenal’s strongest areas include profitability and growth, both rated at 10/10, indicating exceptional performance in generating income and expanding its business. On the other hand, the valuation rank of 6/10 suggests that while the financial metrics are strong, the current price may not reflect the company’s intrinsic value as effectively, contributing to the overall overvaluation scenario.
What Are Gurus and Insiders Doing with FAST?Fastenal Co is currently held by 8 gurus, with 4 adding to their positions and 4 trimming their stakes in recent quarters. This mixed sentiment among gurus highlights a cautious approach towards the stock amidst its current valuation.
Additionally, insider activity shows that over the past 12 months, insiders have bought $0.3 million worth of shares but sold $4.3 million, resulting in a net selling of $4.0 million. This trend of net selling may suggest a lack of confidence among insiders regarding the stock's future price performance, further emphasizing the need for careful consideration by potential investors.
What This Means for InvestorsBased on the analysis, Fastenal Co FAST is currently overvalued according to GF Value™, trading above its estimated fair value. While the company exhibits strong financial health and profitability, the elevated P/E ratio and insider selling activity present cautionary signals for investors. For those looking to explore more about Fastenal and its financial metrics, please visit the Fastenal Co (FAST) stock page.
Frequently Asked QuestionsWhat is FAST's GF Score™?
FAST has a GF Score™ of 96/100, reflecting its strong overall performance across various financial metrics.
Is FAST overvalued or undervalued?
FAST is currently overvalued, with a GF Value™ estimate of $47.79 compared to the current price of $50.38.
What is FAST's P/E ratio?
FAST's P/E ratio is 40.9x, which is above its 5-year median of 35.2x, indicating it is trading at a premium compared to its historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Fastenal NASDAQ: FAST had a good Q3, but raised concerns about margin compression. Investors should not get this wrong: the slim gross margin contraction is primarily due to customer mix, with some additional price-cost pressure, and is offset by several factors. Operating margin and profitability improved, keeping the capital return outlook unchanged, which matters most. Fastenal isn’t a flashy name or high-growth company; it's a nuts-and-bolts (literally) play on economic activity, producing healthy cash flow that it focuses on returning to shareholders.
Fastenal Today
$50.46 -1.54 (-2.97%)
As of 01:28 PM Eastern
This is a fair market value price provided by Massive. Learn more.
$38.97▼
$52.922.06%
42.70
$50.83
The share buybacks aren’t outstanding, but they serve their purpose: offsetting dilutive activity, including share-based compensation. While the share count has edged higher over time, the increases have been minimal and offset by growth and dividends. Dividends are more substantial, yielding about 2% as of mid-October, even while shares trade near record levels.
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The dividend payout ratio is relatively high, at about 88% of trailing earnings, but the company's strong balance sheet and cash flow help support the payment. Increases are a key factor, with the company achieving a double-digit compound annual growth rate that outpaces inflation. Within that, the company is also a Dividend Champion, with 26 consecutive years of dividend increases, a record that may appeal to long-term income investors.
Fastenal Grows, Outperforms, Momentum PresentFastenal had a good quarter, reporting $.2.46 billion in Q3 revenue. The top line is up 15.5% from last year and beat consensus estimates by a slim margin. A 15.5% increase in daily sales drove the strength, underpinned by market share gains, penetration, and pricing. Fastenal breaks down sales in several ways, showing strength in all metrics this quarter. Direct materials sales grew by 18.6%, while indirect materials sales increased 14.3%. Manufacturing sales rose 17.2%, and non-manufacturing sales grew 12.3%. By customer category, contract sales increased 18.8%, while non-contract sales grew 7.8%.
Margin news is a mixed bag but ultimately favorable to investors. While product mix is impairing the top line, the company is widening its client base, growing its sales, and improving efficiency, which more than offsets the decline. Looking ahead, Q3 trends could persist into Q4, driving another solid quarter. Longer-term, analysts forecast earnings to grow at a low-double-digit to high-single-digit pace over the next five years.
Fastenal’s balance sheet reflects its strong position, with cash down but offset by higher receivables, total and current assets, and equity. Liabilities are also rising to support growth, driven by higher payables, but remain well-managed. Long-term debt is down, below 0.25x cash, and total liabilities are below 0.35x equity. In this scenario, the high valuation is a concern, but prices in the balance sheet health and capital return.
Analysts Respond With Price Target IncreasesThe initial analyst reaction includes a price target increase from Robert W. Baird, which raised its target to $60 from $59. The increase follows Fastenal's top- and bottom-line beats and strength across its business. Although consensus remains at Hold, and the average price target sits below the current share price, the recent increase reflects continued confidence in the company's outlook. Institutional data also shows support, with institutions owning more than 80% of the stock and buying on balance over the trailing 12 months.
Price action is mixed but aligns with the trend. Shares initially dropped more than 5% following the release but hit support at the 30-day exponential moving average (EMA), triggering a buying spree and an intraday rebound. The signal suggests a trend-following entry point, with fresh all-time highs possible if bullish momentum continues. A sustained breakout above the previous high could open the door to further gains.
Fastenal MarketRank™ Stock Analysis2.902336571275 of 5 stars
58th Percentile
Hold
0.9% Downside
Healthy
Strong
0.42 Selling Shares
10.32%
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Fastenal’s biggest risk is cyclicality. Economic expansion supports its growth today, but economic downturns happen, and risks abound. The risk is slowing or sluggish growth or, worse, contraction, and downward pressure on capital returns. The offset is that the company’s balance sheet is a fortress, and cash flow can be diverted to sustain the dividend, although distribution cuts may still be needed.
Tailwinds include its centralized role in industrial supply chains, onshoring US capacity (across industries), and an expanding digital footprint. These factors drive steady growth, provide multiyear visibility, and support margins. Its moat lies in vendor lock-in; once its on-site vending and inventory management services are established, switching is costly and time-consuming. Again, when established, the on-site tools improve business efficiency and reduce costs, providing tangible benefits to Fastenal clients. If you doubt its strength, consider this: nearly all its growth is organic, with no acquisitions.
Should You Invest $1,000 in Fastenal Right Now?Before you consider Fastenal, you'll want to hear this.
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Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades and downgrades, please see our analyst ratings page.
A bank will lock in your rate and hand back every dollar at maturity, while an industrial distributor has raised its quarterly payout three times in the past year alone.
SummaryFastenal remains a fundamentally strong, well-run industrial distributor with robust growth and a solid balance sheet.Current valuation is excessive, with FAST trading at a P/E near 42x and P/FCF over 50x, far above historical norms.Despite strong performance, the risk of valuation normalization poses a significant downside for recent investors.I assign FAST a 'Hold' rating, with a $31/share price target, as the risk/reward is not attractive at current levels.Looking for more investing ideas like this one? Get them exclusively at Wolf of Value. Learn More » JHVEPhoto/iStock Editorial via Getty Images
Fastenal's main problem isn't, and hasn't been, quality or business model. I've covered a number of these companies, and continue to cover them actively. The main problem with all of them, but Fastenal above all, is valuation.
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MarketBeat Week in Review – 07/13- 07/17Fastenal NASDAQ: FAST reported third-quarter 2026 sales growth of 15.5% and operating-margin expansion, as the industrial distributor cited market-share gains with larger customers, new contract wins and increased use of technology-enabled supply-chain services.
Net sales reached $2.46 billion, an increase of $330 million from a year earlier. Operating income increased $90 million year over year, which President and CEO Jeff Watts said was the largest single-quarter year-over-year increase in the company’s history. Operating margin rose 90 basis points to 21.5%, while operating earnings and earnings per share each grew by roughly 20%.
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Why Fastenal’s Latest Drop Could Be Its Biggest Opportunity YetFastenal’s trailing 12-month return on invested capital increased 230 basis points to 32.5%, compared with a 10-year average of about 28%, according to Chief Financial Officer Max Tunniclff.
Large accounts and contracts drive sales
Watts said the quarter’s results reflected accelerated growth, improved conversion of sales into profit, and market-share gains tied to the company’s key-account strategy. Fastenal’s contract count increased 6.4% from the prior year, with new signings weighted toward multi-site national accounts.
Fastenal Stock Slips After Earnings: 5 Reasons To Buy the Dip
The number of customer sites spending at least $50,000 per month rose nearly 19%, to roughly 3,300 from approximately 2,800 a year earlier. Sales from those sites increased about 28%. Contract customers represented more than 76% of sales, and their daily sales increased 18.8%.
Pricing contributed approximately 2.4 percentage points to third-quarter growth, a slower contribution than earlier in the year as the company began lapping stronger pricing actions from 2025. Watts said industrial market conditions improved during the first half and continued to improve in the third quarter, though Fastenal’s growth exceeded the markets it serves.
Tunniclff said daily sales growth improved to 15.5% from 14.7% in the second quarter. Heavy manufacturing, which represented about 45% of sales, posted approximately 20% daily sales growth. Growth was particularly strong in key accounts, machined products, aerospace and industrial equipment. Other manufacturing grew about 13%.
Direct-material sales increased approximately 19%, outpacing roughly 14% growth in indirect materials. Electrical, tools and other industrial products also grew faster than the company overall.
Management said data centers were a meaningful contributor to sales growth. Watts estimated that data-center-related activity accounted for roughly 4 to 5 percentage points of growth, though he said it was difficult to precisely measure because the company serves the market through a range of existing customer relationships, including construction contractors and manufacturers.
Digital and supply-chain services expand
Digital sales accounted for 61.4% of total sales and grew approximately 16% on a daily basis. Fastenal signed about 7,500 weighted FMI, or Fastenal Managed Inventory, devices during the quarter, equivalent to about 117 per day, compared with 110 per day a year earlier.
The company’s installed base exceeded 143,000 units, up 7% year over year, and sales through FASTBin increased approximately 18%. Fastenal continues to expect 27,000 to 29,000 weighted device signings for the full year.
Watts described an example of a new customer that had experienced direct-material stock-outs, supply-chain shortages and limited visibility into product consumption. Fastenal reorganized storage areas, deployed bar-coded bins and FMI technology, created planograms and connected the customer to its FAST360° system. The company said the project increased digital visibility from zero to 99%, eliminated stock-outs and reduced inventory, with expected long-term overall cost savings of 25% to 30%.
Margins benefit from SG&A leverage
Third-quarter gross margin was approximately 45%, down 40 basis points from a year earlier but up 20 basis points sequentially. Customer mix was the primary year-over-year headwind, reducing gross margin by approximately 50 basis points as larger customers generally carry lower gross margins despite supporting attractive operating margins through volume and service efficiency.
Price-cost dynamics created an approximately 30-basis-point headwind, though that was 10 basis points better than in the second quarter. Favorable items added about 40 basis points to gross margin, including direct-sourcing savings, supplier rebates and tariff refunds. Tunniclff said roughly half of that benefit reflected timing and should not be assumed to continue in the underlying run rate.
SG&A leverage more than offset the gross-margin decline. SG&A expenses benefited from 130 basis points of leverage, including a 90-basis-point improvement in employee costs as a percentage of sales and roughly 50 basis points of occupancy-cost improvement. Full-time-equivalent headcount increased less than 1%.
Management said lower headcount growth did not reflect planned cuts. Instead, Watts and Tunniclff attributed the productivity gains to automation, artificial intelligence, role specialization and tools that reduce manual work. Watts said a process that previously could require five or six days of sourcing and quoting can now take about 15 minutes using newer technology tools.
During the call, management also discussed a small acquisition related to AI and technology orchestration. Tunniclff said the transaction was not material enough to require disclosure, while Watts said the acquired company would help Fastenal advance its technology capabilities.
Cash flow and capital allocation
Operating cash flow totaled approximately $422 million, or 105% of net income, while free cash flow was about $350 million, or 87% of net income. Receivables rose with sales growth, particularly among larger customers with longer payment terms. Inventory increased approximately 3% over the past year while product availability remained high.
Third-quarter capital spending was about $72 million, or 2.9% of sales, focused on hub and facility capacity, automation, FMI equipment, information technology and transportation assets. Fastenal maintained its full-year expectation for net capital spending of $310 million to $330 million.
The company returned $328 million to shareholders during the quarter, including $298 million in dividends and $30 million in share repurchases. Management said Fastenal returned approximately $1.2 billion over the trailing 12 months after funding operating and capital needs.
Looking ahead, Tunniclff said Fastenal expects pricing to become less of a growth tailwind, but management continues to focus on gaining share and improving price-cost performance. The company said it sees continued structural opportunities to improve productivity while investing to support growth.
About Fastenal (NASDAQ:FAST)Fastenal Company is a distributor of industrial and construction supplies serving businesses, contractors, manufacturers and other organizations. Its product offerings include fasteners such as bolts, nuts and screws, as well as safety equipment, tools, cutting tools, material-handling products, electrical and plumbing supplies, and maintenance and repair items.
The company sells products through a network of branch locations, onsite customer facilities, industrial vending machines and digital platforms.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Fastenal Company (FAST) Q3 2026 Earnings Call October 14, 2026 10:00 AM EDT
Company Participants
Dray Schreiber - Accounting Manager
Jeffery Watts - President, CEO & Director
Max Tunnicliff - Senior EVP & CFO
Conference Call Participants
David Manthey - Robert W. Baird & Co. Incorporated, Research Division
Stephen Volkmann - Jefferies LLC, Research Division
Thomas Moll - Stephens Inc., Research Division
Ryan Merkel - William Blair & Company L.L.C., Research Division
Tingbing Yao - Morgan Stanley, Research Division
Zachary Sherman - KeyBanc Capital Markets Inc., Research Division
Christopher Dankert - D.A. Davidson & Co., Research Division
Guy Drummond Hardwick - Barclays Bank PLC, Research Division
Presentation
Operator
Greetings. Welcome to Fastenal's 2026 Third Quarter Earnings Results Conference Call.
[Operator Instructions] Please note, today's conference is being recorded. At this time, I'll now turn the conference over to Dray Schreiber. Thank you, Dray, you may begin.
Dray Schreiber
Accounting Manager
Welcome to the Fastenal Company 2026 Third Quarter Earnings Conference Call. This call will be hosted by Jeff Watts, our President and Chief Executive Officer; and Max Tunnicliff, our Chief Financial Officer.
The call will start with a general overview of our quarterly results and operations with the remainder of the time being open for questions and answers. Today's conference call is a proprietary Fastenal presentation and is being recorded by Fastenal. No recording, reproduction, transmission or distribution of today's call is permitted without Fastenal's consent. This call is being audio simulcast on the Internet via the Fastenal Investor Relations homepage, investor.fastenal.com. A replay of the webcast will be available on the website until December 1, 2026, at midnight Central Time.
As a reminder, today's conference call may include statements regarding the company's future plans and prospects. These statements are based on our current expectations, and we undertake no duty to update them. It is important to note that the company's
NorthCrest Asset Manangement LLC raised its position in shares of Fastenal Company (NASDAQ:FAST – Free Report) by 55.0% in the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 45,664 shares of the company’s stock after acquiring an additional 16,212 shares during the period. NorthCrest Asset Manangement LLC’s holdings in Fastenal were worth $2,306,000 as of its most recent SEC filing.
Other hedge funds and other institutional investors also recently made changes to their positions in the company. High Net Worth Advisory Group LLC increased its stake in shares of Fastenal by 2.4% in the second quarter. High Net Worth Advisory Group LLC now owns 9,006 shares of the company’s stock worth $433,000 after purchasing an additional 214 shares during the period. Tandem Investment Advisors Inc. lifted its position in shares of Fastenal by 1.8% during the 1st quarter. Tandem Investment Advisors Inc. now owns 12,356 shares of the company’s stock worth $573,000 after purchasing an additional 224 shares during the last quarter. Sound Income Strategies LLC lifted its position in shares of Fastenal by 12.9% during the 1st quarter. Sound Income Strategies LLC now owns 2,025 shares of the company’s stock worth $94,000 after purchasing an additional 232 shares during the last quarter. Pure Financial Advisors LLC lifted its position in shares of Fastenal by 3.4% during the 2nd quarter. Pure Financial Advisors LLC now owns 7,161 shares of the company’s stock worth $344,000 after purchasing an additional 235 shares during the last quarter. Finally, Ausdal Financial Partners Inc. boosted its stake in Fastenal by 2.9% during the 2nd quarter. Ausdal Financial Partners Inc. now owns 8,406 shares of the company’s stock valued at $404,000 after purchasing an additional 239 shares during the period. 81.38% of the stock is owned by institutional investors and hedge funds.
Analysts Set New Price Targets FAST has been the topic of a number of research analyst reports. Sanford C. Bernstein reaffirmed an “underperform” rating on shares of Fastenal in a report on Wednesday, July 15th. Wolfe Research initiated coverage on Fastenal in a report on Tuesday, September 15th. They set an “underperform” rating and a $51.00 price target for the company. Rothschild & Co Redburn set a $55.00 price target on Fastenal and gave the stock a “buy” rating in a report on Monday, July 13th. William Blair reissued an “outperform” rating on shares of Fastenal in a research report on Friday, September 4th. Finally, Morgan Stanley raised their price objective on shares of Fastenal from $48.00 to $52.00 and gave the stock an “equal weight” rating in a research note on Thursday, July 16th. Six investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Hold” and an average target price of $49.92.
Read Our Latest Research Report on Fastenal Fastenal Stock Performance NASDAQ FAST opened at $51.43 on Wednesday. The company’s fifty day moving average is $50.33 and its two-hundred day moving average is $47.41. Fastenal Company has a 52-week low of $38.97 and a 52-week high of $52.92. The company has a debt-to-equity ratio of 0.01, a current ratio of 4.18 and a quick ratio of 2.21. The firm has a market capitalization of $59.02 billion, a price-to-earnings ratio of 43.59, a P/E/G ratio of 3.20 and a beta of 0.69.
Fastenal (NASDAQ:FAST – Get Free Report) last announced its quarterly earnings data on Tuesday, July 14th. The company reported $0.33 EPS for the quarter, meeting analysts’ consensus estimates of $0.33. The business had revenue of $2.39 billion during the quarter, compared to analyst estimates of $2.34 billion. Fastenal had a net margin of 15.45% and a return on equity of 34.03%. The firm’s revenue for the quarter was up 14.7% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.29 earnings per share. Equities research analysts forecast that Fastenal Company will post 1.26 EPS for the current year.
Fastenal Announces Dividend The company also recently announced a quarterly dividend, which will be paid on Wednesday, November 25th. Investors of record on Wednesday, October 28th will be given a dividend of $0.26 per share. The ex-dividend date of this dividend is Wednesday, October 28th. This represents a $1.04 dividend on an annualized basis and a yield of 2.0%. Fastenal’s dividend payout ratio (DPR) is 88.14%.
Insider Transactions at Fastenal In related news, Director Rita J. Heise sold 34,964 shares of the business’s stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $50.05, for a total transaction of $1,749,948.20. Following the transaction, the director directly owned 20,000 shares in the company, valued at $1,001,000. The trade was a 63.61% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Michael Ancius sold 3,000 shares of the business’s stock in a transaction dated Tuesday, July 28th. The shares were sold at an average price of $49.00, for a total value of $147,000.00. Following the transaction, the director owned 58,690 shares in the company, valued at $2,875,810. This represents a 4.86% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.28% of the stock is owned by company insiders.
Fastenal Company Profile (Free Report)
Fastenal Company is a distributor of industrial and construction supplies serving businesses, contractors, manufacturers and other organizations. Its product offerings include fasteners such as bolts, nuts and screws, as well as safety equipment, tools, cutting tools, material-handling products, electrical and plumbing supplies, and maintenance and repair items.
The company sells products through a network of branch locations, onsite customer facilities, industrial vending machines and digital platforms.
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Key Takeaways Fastenal's earnings rose 19.8% to 35 cents per share, beating estimates, while sales missed consensus.Contract customer daily sales climbed 18.8%, while pricing added 240 bps to third-quarter sales growth.Operating margin expanded 90 bps to 21.5%, as SG&A leverage helped offset gross margin pressure. Fastenal Company (FAST - Free Report) reported mixed third-quarter 2026 results, with earnings beating the Zacks Consensus Estimate and net sales missing the same. Year over year, however, both metrics grew notably.
Customer contract wins and pricing actions supported growth, while expense leverage helped offset pressure from sales to larger accounts. Contract customer daily sales rose 18.8%, and operating margin expanded 90 basis points (bps) to 21.5%.
FAST stock lost 6.2% during today’s pre-market trading session after the announcement of the financial results.
Fastenal’s Q3 Earnings & Sales HighlightsFastenal’s quarterly earnings of 35 cents per share surpassed the Zacks Consensus Estimate by 2.9% and increased 19.8% year over year from 29 cents per share.
Net sales rose 15.5% year over year to $2.46 billion but missed the consensus mark of $2.49 billion by 1%.
FAST's Contract Accounts Drive Sales GainsSales benefited from customer contracts signed since the first quarter of 2024 and a modest improvement in industrial production. Product pricing added approximately 240 bps to third-quarter sales growth. Currency movements created a roughly 10-bps headwind.
Contract customers accounted for 76.5% of revenues, up from 73.8% a year earlier. Non-contract daily sales increased 7.8%. The number of contracts rose 6.4% to 3,744, with signings weighted toward national multi-site accounts. Average customer sites generating at least $50,000 in monthly sales increased to 3,288 from 2,771. Sales from those sites grew 27.6% to $1.46 billion, highlighting the concentration of growth among larger customers.
Fastenal's Manufacturing Markets Lead DemandManufacturing contributed 76.6% of quarterly revenues, with daily sales rising 17.2%. Heavy manufacturing increased 20.2% and accounted for 44.6% of revenues, benefiting from key accounts in aerospace, machined products and industrial equipment. Other manufacturing daily sales advanced 13.2%.
Non-residential construction daily sales grew 12%, marking the sixth consecutive quarter of growth. Other end markets advanced 12.4%, helped by transportation and reseller customers. Total non-manufacturing daily sales increased 12.3%.
Direct material daily sales rose 18.6%, outpacing the 14.3% growth in indirect materials. Direct cutting tools and abrasives gained 19.5%, while direct non-fasteners and hardware increased 21.2%.
FAST's Digital Footprint ExpandsDigital Footprint sales increased 16.1% to $1.54 billion and represented 61.4% of revenues compared with 61.3% a year ago. This measure includes sales through Fastenal Managed Inventory (FMI) technology and eBusiness transactions excluding overlapping orders.
FMI sales grew 14.6% to $1.12 billion, while eBusiness sales climbed 14.8% to $721.5 million. FASTBin and FASTVend sales increased 17.6% to $827.2 million, outpacing overall company growth. Fastenal signed 7,484 weighted FASTBin and FASTVend machine-equivalent units (MEUs), up 6.2%. The installed base reached 143,878 MEUs, up 7.4%, reinforcing its emphasis on automated inventory management.
Fastenal's Expense Leverage Lifts ProfitabilityGross profit rose 14.4% to $1.1 billion, but gross margin declined approximately 40 bps to 44.8%. A mix shift toward large customers reduced gross margin by about 50 bps, while pricing relative to costs exerted a roughly 30-bps drag. That price-cost headwind narrowed about 10 bps from the preceding quarter. Sourcing savings, supplier rebates and tariff refunds provided relief.
SG&A expenses increased 9.4% to $573.9 million, below revenue growth. As a share of sales, SG&A improved 130 bps to 23.3%, supported by labor productivity and fixed-cost leverage. Operating income climbed 20.2% to $530.8 million, while net income increased 19.7% to $401.6 million.
FAST's Cash Generation Supports Shareholder ReturnsOperating cash flow increased 9% year over year to $421.6 million, equaling 105% of net income compared with 115.3% a year ago. Higher receivables and inventory requirements absorbed cash as sales expanded. Year over year, accounts receivable increased 19.9%, inventories rose 3.1% and accounts payable advanced 29.3%.
Free cash flow, a non-GAAP measure, totaled $349.6 million compared with $332.1 million a year earlier. It represented 87.1% of net income, down from 99%. The company returned $328.4 million to shareholders through $298.2 million in dividends and $30.2 million in repurchases. Total debt ended the quarter at $100 million, down from $195 million a year ago.
Fastenal Maintains Capital PlanFastenal maintained its fiscal 2026 net capital investment expectation of $310-$330 million compared with $230.6 million in 2025. Spending priorities include replacing the Atlanta hub, improving distribution efficiency, completing delayed IT projects and adding trucking capacity. The company expects an ongoing tax rate of approximately 24.6%, absent discrete tax items or changes to tax law.
FAST’s Zacks Rank & Stocks With the Favorable CombinationFastenal currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Here are some companies from the Industrial Products sector, which according to our model, have the right combination of elements to post an earnings beat in their respective quarters to be reported.
Eaton Corporation plc (ETN - Free Report) has an Earnings ESP of +0.53% and a Zacks Rank of 2.
Eaton’s earnings topped the consensus mark in three of the last four quarters and met on the remaining occasion, with the average surprise being 1.3%. Earnings for the company’s third quarter of 2026 are expected to grow 15% year over year.
Kennametal Inc. (KMT - Free Report) has an Earnings ESP of +1.50% and a Zacks Rank of 3.
Kennametal’s earnings topped the consensus mark in each of the last four quarters, with the average surprise being 29.3%. Earnings for the company’s third quarter of 2026 are expected to surge a whopping 682.4% year over year.
Watsco, Inc. (WSO - Free Report) has an Earnings ESP of +0.19% and a Zacks Rank of 3.
Watsco’s earnings topped the consensus mark in one of the last four quarters and missed on the remaining three occasions, with the average negative surprise being 4.9%. Earnings for the company’s third quarter of 2026 are expected to improve 3.8% year over year.
Fastenal Co (NASDAQ:FAST), the industrial supplies distributor, saw third-quarter net income rise by 20% to $401.6 million as stronger manufacturing demand and gains with larger customers lifted sales.
Revenue rose 15.5% to $2.46 billion in the three months to September 30, while diluted earnings per share increased 21% to $0.35.
Daily sales also grew 15.5%, reflecting customer contract wins, pricing actions and a modest improvement in industrial production during the first nine months of the year.
Operating income climbed 20.2% to $530.8 million as the company controlled selling and administrative costs more effectively, raising its operating margin to 21.5% from 20.7% a year earlier.
Manufacturing remained the strongest end market, with daily sales rising 17.2% as Fastenal benefited from larger customer relationships and continued demand for supplies used in production.
Heavy manufacturing sales grew 20.2%, while non-residential construction sales increased 12%, extending the construction market's growth streak to six consecutive quarters.
Customers with contracts accounted for 76.5% of quarterly sales, up from 73.8% a year earlier, and their daily sales increased 18.8%, significantly outperforming the 7.8% growth recorded among non-contract customers.
However, the gross margin declined to 44.8% from 45.3% as a shift towards larger customers and price-related cost pressures outweighed improvements elsewhere in the business.
Fastenal said larger customer relationships generally carry lower gross margins but can generate higher absolute profits through greater volumes, fixed-cost leverage and operating efficiencies.
The company also lowered its 2026 target for weighted signings of its FASTBin and FASTVend inventory management devices to between 27,000 and 29,000 units, from a previous range of 28,000 to 30,000.
Fastenal signed 7,484 devices during the quarter, up 6.2% year on year, while sales through its digital inventory management technology rose 14.6% to $1.12 billion.
Operating cash flow increased 9% to $421.6 million, equivalent to 105% of net income, although higher receivables and inventory requirements absorbed cash as the business expanded.
The company returned $328.4 million to shareholders through dividends and share repurchases during the quarter, while total debt fell to $100 million from $195 million a year earlier.
Fastenal maintained its 2026 capital expenditure forecast of between $310 million and $330 million, reflecting planned investment in distribution capacity, technology and transportation infrastructure.
The fastener-and-tool distributor posted third-quarter profit of $401.6 million, or 35 cents a share, compared with $335.5 million, or 29 cents a share, a year earlier.
Fastenal (FAST - Free Report) came out with quarterly earnings of $0.35 per share, beating the Zacks Consensus Estimate of $0.34 per share. This compares to earnings of $0.29 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +2.94%. A quarter ago, it was expected that this maker of industrial and construction fasteners would post earnings of $0.33 per share when it actually produced earnings of $0.33, delivering no surprise.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Fastenal, which belongs to the Zacks Industrial Services industry, posted revenues of $2.46 billion for the quarter ended September 2026, missing the Zacks Consensus Estimate by 0.95%. This compares to year-ago revenues of $2.13 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Fastenal shares have added about 28.2% since the beginning of the year versus the S&P 500's gain of 14%.
What's Next for Fastenal?While Fastenal has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Fastenal was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.31 on $2.38 billion in revenues for the coming quarter and $1.26 on $9.3 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Industrial Services is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
ClearSign Technologies (CLIR - Free Report) , another stock in the same industry, has yet to report results for the quarter ended September 2026.
This combustion systems technology company is expected to post quarterly loss of $0.20 per share in its upcoming report, which represents a year-over-year change of +33.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
ClearSign Technologies' revenues are expected to be $0.88 million, down 15.1% from the year-ago quarter.
WINONA, Minn.--(BUSINESS WIRE)--Fastenal Company (Nasdaq:FAST) ('Fastenal,' 'we,' 'our,' or 'us'), a global leader in supply chain services, today reported results for the third quarter ended September 30, 2026. Results reflected strong daily sales growth, operating expense leverage, and continued growth with larger customers supported by our Onsite, digital, and supply chain solutions. Except for share and per share information, or as otherwise noted, amounts are stated in millions. Percentage.
WINONA, Minn.--(BUSINESS WIRE)--Fastenal Company (Nasdaq:FAST) ('Fastenal,' 'we,' 'our,' or 'us') reported its board of directors declared a dividend of $0.26 per share to be paid in cash on November 25, 2026 to shareholders of record at the close of business on October 28, 2026. Except for share and per share information, dollar amounts are stated in millions. We began paying annual dividends in 1991, semi-annual dividends in 2003, and then expanded to quarterly dividends in 2011. In addition.
Key Takeaways Fastenal's Q3 2026 EPS estimate stands at 34 cents, implying 17.2% year-over-year growth.August daily sales rose 16.6% to $38.7M, led by manufacturing demand and strong direct fastener sales.Productivity gains and margin initiatives may offset unfavorable customer mix & higher freight costs. Fastenal Company (FAST - Free Report) is scheduled to report third-quarter 2026 results on Oct. 14, before the opening bell.
In the last reported quarter, its earnings per share (EPS) met the Zacks Consensus Estimate of 33 cents but grew year over year by 15.9%. Net sales topped the consensus mark by 1.9% and grew 14.7% from the year-ago quarter.
Fastenal’s earnings met the consensus mark in three of the last four quarters and missed on the remaining occasion, with the average negative surprise being 0.8%.
How Are Estimates Placed for FAST Stock?For the third quarter, FAST’s Zacks Consensus Estimate for EPS has remained unchanged over the past 60 days at 34 cents. However, the estimated figure indicates 17.2% year-over-year growth.
The consensus mark for net sales is pegged at $2.49 billion, indicating a 16.6% increase from the year-ago reported figure of $2.13 billion.
Factors Likely to Have Shaped Fastenal's Q3 PerformanceSales
In the third quarter, the top-line performance of Fastenal is likely to have increased year over year because of an improving industrial backdrop. Key account wins, larger customer sites and deeper use of managed inventory and digital tools sustain market share gains, while several sales-boosting initiatives contributed additionally. The company’s focus on growing its digital footprint, increasing inventory and improving picking efficiency at its hubs is expected to have paid off.
Direct materials, which include fasteners, cutting tools and other production-related items, are expected to have added to the sales growth of Fastenal, led by improved demand trends for direct fasteners and hardware. Besides, its manufacturing exposure is likely to have been another major driver for its performance. Moreover, a balanced mix of on-site and off-site services, along with market share gains across various product categories, is likely to have been an additional growth contributor.
If we go by the latest monthly sales report, August’s daily sales grew 16.6% year over year to $38.7 million and grew 3% from July 2026.
In terms of end markets in August 2026, Heavy Manufacturing and Other Manufacturing daily sales increased 21.8% and 14.3%, respectively, with Non-residential Construction growing 9.6%. In terms of customer usage, daily sales for Direct Fasteners/Hardware and Direct non-Fasteners/Hardware jumped 16.7% and 21.8%, respectively. Daily sales under Direct Cutting Tools and Abrasives also climbed 21.7% in August 2026.
During the same month, the daily sales growth of contract and non-contract customers was 19% and 11%, respectively, with daily sales through eBusiness and FMI increasing 15% each.
Margins
The bottom line of FAST is expected to have improved during the third quarter on the back of labor productivity, fixed-cost leverage, the ongoing fastener expansion project, supply-improvement initiatives and cost control strategies. The company’s efforts in controlling costs, especially container and transportation costs, are encouraging. Automating warehouses, increasing delivery efficiency through its trucking network and selling more private-label products with higher margins are likely to have aided the fourth quarter’s bottom-line growth.
Fastenal is likely to have faced an unfavorable customer and product mix, alongside higher freight and overhead costs, given the broader macro uncertainties spanning the economy. However, the increased leverage from top-line growth and margin expansion initiatives is expected to have more than offset these headwinds.
What the Zacks Model Unveils for FastenalOur proven model does not predict an earnings beat for Fastenal this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, it is not the case here.
FAST’s Earnings ESP: The company has an Earnings ESP of -0.97%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
FAST’s Zacks Rank: Currently, the stock carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks With the Favorable CombinationHere are some companies from the Industrial Products sector, which according to our model, also have the right combination of elements to post an earnings beat in their respective quarters to be reported.
Eaton Corporation plc (ETN - Free Report) has an Earnings ESP of +0.53% and a Zacks Rank of 2.
Eaton’s earnings topped the consensus mark in three of the last four quarters and met on the remaining occasion, with the average surprise being 1.3%. Earnings for the company’s third quarter of 2026 are expected to grow 15% year over year.
Kennametal Inc. (KMT - Free Report) has an Earnings ESP of +1.50% and a Zacks Rank of 3.
Kennametal’s earnings topped the consensus mark in each of the last four quarters, with the average surprise being 29.3%. Earnings for the company’s third quarter of 2026 are expected to surge a whopping 682.4% year over year.
Watsco, Inc. (WSO - Free Report) has an Earnings ESP of +0.19% and a Zacks Rank of 3.
Watsco’s earnings topped the consensus mark in one of the last four quarters and missed on the remaining three occasions, with the average negative surprise being 4.9%. Earnings for the company’s third quarter of 2026 are expected to improve 3.8% year over year.
An important take on the U.S. economy arrives in the coming week, when several major banks will report third-quarter earnings. The most interesting reports, however, may be from a couple of industrial companies and an insurer.
AZZ (AZZ) will announce results after the market close on Tuesday. The Fort Worth, Texas-based company is one of the largest suppliers of metal coatings. Its growth drivers include power grids, data center construction and the reshoring of factories — all of which are consuming vast amounts of metals.
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Analysts polled by FactSet expect earnings of $1.86 per share, which would be a 20% year-over-year increase. Sales are expected to climb 11.1% to $463.4 million.
The stock is forming a double-bottom base with a 156.74 buy point. Shares are finding support at the 200-day moving average but remain below the 50-day line, so they need to recover more before reaching the entry. AZZ has an 88 Composite Rating.
Fastenal (FAST) will announce third-quarter results Wednesday morning. Analysts' consensus earnings estimate is 34 cents a share, a year-over-year increase of 16.5%. Sales are expected to climb 14.2% to $2.436 billion, according to FactSet.
Data Centers In Earnings Calendar
Fastenal also plays to the data center and reshoring themes as a distributor of hardware and other industrial parts. Much of its business is shifting toward heavy construction. Fastenal, which has an 88 Composite Rating, increased earnings 12% to 17% the past four quarters. Sales rose 11% to 15%.
The stock is forming a flat base with a 52.91 buy point. Investors could also appreciate that it offers a chance to bet on a bullish earnings report using IBD's earnings options strategy (explained below).
On Thursday, with the stock closing at 50.49, a call option with a 50 strike price that expires Oct. 16 was quoted around $1.90. That's less than 4% of the stock price. Open interest of more than 2,400 contracts at that strike price and similar amounts for the 52.50 and 55 strikes suggested that traders are betting on a positive earnings announcement. Open interest for puts was much lower, although some 2,000 put contracts were in place at the 40 strike.
On Friday, insurer Travelers (TRV) releases third-quarter results before the opening bell. The average EPS estimate is $7.23, or 11.2% below the year-ago earnings, per FactSet. Revenue is seen falling 1.4% to $11.311 billion, as the insurer comes up against some tough year-ago comparisons.
The stock is in a flat base with a 398.69 buy point and an early entry at 383.99. It closed at 370.27 Thursday, and the 370 call option expiring Oct. 16 went for $7.65 at the midpoint of the bid-ask spread. That's 2% of the share price, making it an attractive choice for our earnings strategy.
Banks Set To Report
The week's earnings calendar looks like a checkbook, with the nation's largest banks issuing quarterly reports starting Tuesday.
Wells Fargo (WFC), Citigroup (C) and JPMorgan Chase (JPM), the country's largest bank, will announce Tuesday morning. Investment bank Goldman Sachs (GS) also reports Tuesday.
Then Wednesday, Bank of America (BAC) and Morgan Stanley (MS) release results. Giant asset manager BlackRock (BLK) also reports Wednesday.
Those banking stocks have been trending lower and are below their 50-day lines.
"Critical to restoring positive bank stock sentiment from a fundamental basis are as follows: Reassurance that the capital markets pipeline is still robust, loan growth is generally intact despite slower trends vs. (first half of 2026), and that deposit costs aren't accelerating beyond market expectations," UBS bank analyst Erika Najarian said in a report this week.
Earnings Calendar And IBD's Options Strategy
A basic options trading strategy around earnings — using call options — allows investors to buy a stock at a predetermined price without taking a lot of risk. Investors put this to work during stock market uptrends. Traders should generally avoid this during stock market corrections.
Here's how the option trading strategy works:
First, investors should identify top-rated stocks with a bullish chart. Some might be setting up in sound early-stage bases. Others might have broken out already and are getting support at their 10-week moving average for the first time. A few also might be trading tightly near highs and are refusing to give up much ground. Avoid extended stocks that are too far past proper entry points.
A call option equates to a bullish bet on a stock. Put options are bearish bets. One call option contract gives the holder the right to buy 100 shares of a stock at a specified level, known as the strike price, and by a specific date, called the expiration.
The Next Step
Once you've identified a bullish setup in the earnings calendar, check strike prices with your online trading platform or at Cboe.com. Also, make sure the option remains liquid with a relatively tight spread between the bid and ask.
Investors should look for a strike price just above the underlying stock price — that's out of the money — and check the premium. Ideally, the premium should not exceed 4% of the underlying stock price at the time. In some cases, an in-the-money strike price is OK as long as the premium isn't too expensive.
It's best to choose an expiration date that fits a risk objective. But investors should be mindful that time is money in the options market. Near-term expiration dates will have cheaper premiums than those further out.
Buying time in the options market comes at a higher cost. Also, keep in mind that implied volatility tends to rise before an earnings report. That can push up the cost of options. And volatility often plunges after an earnings report, which can lower the value of a call option.
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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Fastenal Company (NASDAQ:FAST) will release earnings for its third quarter before the opening bell on Wednesday, Oct. 14.
Analysts expect the Winona, Minnesota-based company to report quarterly earnings of 34 cents per share, up from 29 cents per share in the year-ago period. The consensus estimate for FAST’s quarterly revenue is $2.44 billion. It reported $2.13 billion last year, according to Benzinga Pro.
On July 14, Fastenal reported better-than-expected second-quarter sales results.
Fastenal shares rose 0.8% to trade at $49.92 on Thursday.
Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.
Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.
Wolfe Research analyst Nigel Coe reinstated an Underperform rating with a price target of $51 on Sept. 15, 2026. This analyst has an accuracy rate of 63%. Morgan Stanley analyst Chris Snyder maintained an Equal-Weight rating and increased the price target from $48 to $52 on July 16, 2026. This analyst has an accuracy rate of 78%. Barclays analyst Guy Hardwick maintained the stock with an Equal-Weight rating and cut the price target from $47 to $46 on July 16, 2026. This analyst has an accuracy rate of 71%. DA Davidson analyst Chris Dankert maintained a Neutral rating with a price target of $46 on July 15, 2026. This analyst has an accuracy rate of 67%. Baird analyst David Manthey maintained the stock with an Outperform rating and cut the price target from $52 to $50 on April 14, 2026. This analyst has an accuracy rate of 73%. Considering buying FAST stock? Here’s what analysts think:
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A $10,000 investment in Fastenal (FAST +0.12%) at its 1987 initial public offering (IPO) would be worth roughly $21.5 million today. And that doesn't include dividends.
Fastenal went public on Aug. 20, 1987, at $9 per share. The company says a $9,000 IPO investment bought 1,000 shares. After nine stock splits, those shares became 384,000 by the end of 2025, worth about $15.4 million. Scale that investment to $10,000, and you could have purchased 1,111 whole shares for $9,999. After those splits, you'd own 426,624 shares.
Image source: Getty Images.
At Fastenal's Sept. 25, 2026, closing price of $50.43, that stake would be worth approximately $21.5 million. Not bad for a company best known for selling nuts, bolts, screws, safety equipment, and other industrial supplies.
Nearly four decades of growth Fastenal had roughly 50 stores and about $20 million in annual sales around the time of its IPO. Today, it's an $8 billion industrial distribution giant.
Revenue reached $8.2 billion in 2025, while net income came in at nearly $1.26 billion. And growth hasn't stopped. Second-quarter 2026 sales increased 14.7% year over year to $2.39 billion, while net income jumped 15.9% to $382.8 million.
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Fastenal has also expanded beyond its traditional store model by placing inventory and vending systems directly inside customer facilities, making it harder for competitors to displace the company once those relationships are established.
Then there are the dividends. Fastenal began paying dividends in 1991 and now pays them quarterly. So anyone who bought 1,000 shares at the IPO would have collected more than $2.9 million in dividends through the end of 2025 on top of the massive stock appreciation.
Turning $10,000 into more than $21 million didn't require finding the next revolutionary technology company. Fastenal did it by selling basic industrial products, expanding consistently, and compounding shareholder wealth for nearly four decades. Indeed, this is a lesson for those who write off these types of industrial stocks as "boring." In other words, don't sleep on "boring industrial stocks."
WINONA, Minn.--(BUSINESS WIRE)--Fastenal Company (Nasdaq:FAST) ('Fastenal,' 'we,' 'our,' or 'us') announced the date and time for its conference call to review 2026 third quarter results, as well as current operations. The conference call will be broadcast live over the Internet on Wednesday, October 14, 2026, at 9:00 a.m. central time.
To access the call, please visit the following Web address:
https://investor.fastenal.com/events.cfm
Our conference call presentation (which includes information, supplemental to that contained in our earnings announcement, regarding results for the quarter) will be available at 6:00 a.m., central time, on the day of the conference call. To access the presentation, please visit the following Web address: https://investor.fastenal.com/releases.cfm
An online archive of the webcast will be available within one hour of the conclusion of the call and will remain available until December 1, 2026. Participants must have a compatible device with speakers to listen to the online webcast.
About Fastenal
Organizations around the world rely on Fastenal to help them simplify and secure the supply chain for a broad range of industrial products. To understand our customers' challenges and provide services and solutions that fit their unique needs, we've built out the most extensive presence in our industry, with a vast network of local teams and embedded technology. At the heart of it all is a simple commitment: great people, close to the customer, backed by world-class logistics, technology, and resources.
Additional information regarding Fastenal is available on our website at www.fastenal.com.
Envestnet Asset Management Inc. raised its stake in Fastenal Company (NASDAQ:FAST – Free Report) by 0.5% in the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 10,347,343 shares of the company’s stock after acquiring an additional 50,335 shares during the period. Envestnet Asset Management Inc. owned 0.90% of Fastenal worth $496,983,000 as of its most recent SEC filing.
Other institutional investors and hedge funds have also made changes to their positions in the company. BlackRock Inc. acquired a new stake in shares of Fastenal in the second quarter valued at approximately $5,105,454,000. Caisse de depot et placement du Quebec bought a new position in Fastenal in the 2nd quarter worth approximately $39,417,000. Fideuram Asset Management Ireland dac bought a new position in Fastenal in the 4th quarter worth approximately $4,041,000. National Pension Service increased its position in Fastenal by 2.9% in the 4th quarter. National Pension Service now owns 1,603,839 shares of the company’s stock valued at $64,362,000 after acquiring an additional 45,260 shares during the period. Finally, Employees Retirement System of Texas increased its position in Fastenal by 780.2% in the 4th quarter. Employees Retirement System of Texas now owns 1,146,011 shares of the company’s stock valued at $45,989,000 after acquiring an additional 1,015,811 shares during the period. 81.38% of the stock is currently owned by institutional investors and hedge funds.
Insider Buying and Selling In other Fastenal news, Director Rita J. Heise sold 34,964 shares of Fastenal stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $50.05, for a total value of $1,749,948.20. Following the transaction, the director owned 20,000 shares in the company, valued at approximately $1,001,000. The trade was a 63.61% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Director Michael Ancius sold 3,000 shares of the company’s stock in a transaction on Tuesday, July 28th. The shares were sold at an average price of $49.00, for a total value of $147,000.00. Following the completion of the transaction, the director directly owned 58,690 shares in the company, valued at $2,875,810. This represents a 4.86% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.28% of the company’s stock.
Analysts Set New Price Targets A number of brokerages have issued reports on FAST. Sanford C. Bernstein reiterated an “underperform” rating on shares of Fastenal in a research report on Wednesday, July 15th. William Blair restated an “outperform” rating on shares of Fastenal in a research note on Friday, September 4th. Wolfe Research started coverage on shares of Fastenal in a report on Tuesday, September 15th. They issued an “underperform” rating and a $51.00 price objective for the company. Barclays decreased their target price on shares of Fastenal from $47.00 to $46.00 and set an “equal weight” rating for the company in a research report on Thursday, July 16th. Finally, Morgan Stanley raised their target price on shares of Fastenal from $48.00 to $52.00 and gave the company an “equal weight” rating in a research note on Thursday, July 16th. Six research analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $49.50. Get Our Latest Stock Analysis on Fastenal
Fastenal Price Performance NASDAQ:FAST opened at $50.99 on Thursday. The company has a quick ratio of 2.21, a current ratio of 4.18 and a debt-to-equity ratio of 0.01. The business’s 50-day moving average price is $49.30 and its 200 day moving average price is $46.91. Fastenal Company has a 52-week low of $38.97 and a 52-week high of $52.92. The firm has a market cap of $58.51 billion, a P/E ratio of 43.21, a PEG ratio of 3.12 and a beta of 0.72.
Fastenal (NASDAQ:FAST – Get Free Report) last issued its quarterly earnings results on Tuesday, July 14th. The company reported $0.33 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.33. The company had revenue of $2.39 billion during the quarter, compared to the consensus estimate of $2.34 billion. Fastenal had a net margin of 15.45% and a return on equity of 34.03%. Fastenal’s revenue was up 14.7% on a year-over-year basis. During the same period in the prior year, the company earned $0.29 EPS. As a group, sell-side analysts predict that Fastenal Company will post 1.26 earnings per share for the current fiscal year.
Fastenal Increases Dividend The firm also recently announced a quarterly dividend, which was paid on Tuesday, August 25th. Investors of record on Tuesday, July 28th were issued a dividend of $0.26 per share. The ex-dividend date was Tuesday, July 28th. This is a positive change from Fastenal’s previous quarterly dividend of $0.24. This represents a $1.04 dividend on an annualized basis and a yield of 2.0%. Fastenal’s payout ratio is 88.14%.
About Fastenal (Free Report)
Fastenal Company (NASDAQ: FAST) is a distributor of industrial and construction supplies. The company provides fasteners such as bolts, nuts, screws and related hardware, along with safety products, tools, material-handling equipment, welding supplies, janitorial products and other maintenance, repair and operations (MRO) materials.
Fastenal serves manufacturers, construction companies, contractors, government organizations and other commercial customers. Its offerings are delivered through a network of branch locations, customer-specific onsite operations, industrial vending machines, e-commerce platforms and other supply-chain services designed to help customers manage inventory and reduce procurement time.
Founded in 1967 by Bob Kierlin in Winona, Minnesota, Fastenal has expanded from a regional fastener supplier into an international industrial distributor.
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For those looking to find strong Industrial Products stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Fastenal (FAST - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.
Fastenal is a member of our Industrial Products group, which includes 186 different companies and currently sits at #5 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Fastenal is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for FAST's full-year earnings has moved 2.1% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, FAST has gained about 22.1% so far this year. Meanwhile, the Industrial Products sector has returned an average of 13.5% on a year-to-date basis. As we can see, Fastenal is performing better than its sector in the calendar year.
Another stock in the Industrial Products sector, Kubota Corp. (KUBTY - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 25.2%.
For Kubota Corp., the consensus EPS estimate for the current year has increased 56.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Fastenal is a member of the Industrial Services industry, which includes 16 individual companies and currently sits at #179 in the Zacks Industry Rank. On average, stocks in this group have gained 7.7% this year, meaning that FAST is performing better in terms of year-to-date returns.
In contrast, Kubota Corp. falls under the Manufacturing - Farm Equipment industry. Currently, this industry has 6 stocks and is ranked #187. Since the beginning of the year, the industry has moved +44.5%.
Going forward, investors interested in Industrial Products stocks should continue to pay close attention to Fastenal and Kubota Corp. as they could maintain their solid performance.
Nykredit A S purchased a new stake in Fastenal Company (NASDAQ:FAST – Free Report) during the second quarter, according to its most recent filing with the SEC. The firm purchased 237,756 shares of the company’s stock, valued at approximately $11,419,000.
Several other large investors have also recently modified their holdings of FAST. BlackRock Inc. acquired a new position in shares of Fastenal in the 2nd quarter valued at $5,105,454,000. Geode Capital Management LLC raised its position in Fastenal by 1.9% during the fourth quarter. Geode Capital Management LLC now owns 37,699,836 shares of the company’s stock valued at $1,508,216,000 after acquiring an additional 685,047 shares in the last quarter. Bank of New York Mellon Corp acquired a new position in shares of Fastenal in the 2nd quarter valued at $859,310,000. Bank of America Corp DE raised its position in shares of Fastenal by 12.0% in the first quarter. Bank of America Corp DE now owns 16,292,425 shares of the company’s stock worth $755,969,000 after acquiring an additional 1,744,193 shares during the period. Finally, Norges Bank purchased a new position in Fastenal during the fourth quarter worth approximately $646,046,000. Institutional investors own 81.38% of the company’s stock.
Fastenal Stock Performance NASDAQ:FAST opened at $49.01 on Monday. Fastenal Company has a 1-year low of $38.97 and a 1-year high of $52.92. The company has a debt-to-equity ratio of 0.01, a current ratio of 4.18 and a quick ratio of 2.21. The firm’s fifty day moving average price is $49.05 and its 200 day moving average price is $46.84. The firm has a market cap of $56.24 billion, a price-to-earnings ratio of 41.53, a price-to-earnings-growth ratio of 3.06 and a beta of 0.72.
Fastenal (NASDAQ:FAST – Get Free Report) last released its quarterly earnings data on Tuesday, July 14th. The company reported $0.33 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.33. The firm had revenue of $2.39 billion during the quarter, compared to analysts’ expectations of $2.34 billion. Fastenal had a return on equity of 34.03% and a net margin of 15.45%.Fastenal’s revenue was up 14.7% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.29 earnings per share. On average, sell-side analysts expect that Fastenal Company will post 1.26 EPS for the current year. Fastenal Increases Dividend The business also recently disclosed a quarterly dividend, which was paid on Tuesday, August 25th. Stockholders of record on Tuesday, July 28th were issued a dividend of $0.26 per share. This represents a $1.04 annualized dividend and a dividend yield of 2.1%. The ex-dividend date was Tuesday, July 28th. This is an increase from Fastenal’s previous quarterly dividend of $0.24. Fastenal’s payout ratio is currently 88.14%.
Wall Street Analyst Weigh In Several equities research analysts have issued reports on the stock. Sanford C. Bernstein reaffirmed an “underperform” rating on shares of Fastenal in a research note on Wednesday, July 15th. Morgan Stanley lifted their target price on Fastenal from $48.00 to $52.00 and gave the company an “equal weight” rating in a research report on Thursday, July 16th. Robert W. Baird set a $54.00 price objective on shares of Fastenal in a report on Friday, August 7th. Wolfe Research assumed coverage on Fastenal in a report on Tuesday, September 15th. They set an “underperform” rating and a $51.00 target price for the company. Finally, Jefferies Financial Group restated a “buy” rating on shares of Fastenal in a research note on Thursday, June 4th. Six equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, Fastenal presently has an average rating of “Hold” and an average price target of $49.50.
Check Out Our Latest Research Report on Fastenal
Insider Buying and Selling In other Fastenal news, Director Rita Heise sold 34,964 shares of the stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $50.05, for a total value of $1,749,948.20. Following the completion of the sale, the director owned 20,000 shares of the company’s stock, valued at $1,001,000. This trade represents a 63.61% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Michael J. Ancius sold 3,000 shares of Fastenal stock in a transaction dated Tuesday, July 28th. The stock was sold at an average price of $49.00, for a total value of $147,000.00. Following the sale, the director directly owned 58,690 shares in the company, valued at approximately $2,875,810. The trade was a 4.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 0.28% of the company’s stock.
Fastenal Company Profile (Free Report)
Fastenal Company (NASDAQ: FAST) is a distributor of industrial and construction supplies. The company provides fasteners such as bolts, nuts, screws and related hardware, along with safety products, tools, material-handling equipment, welding supplies, janitorial products and other maintenance, repair and operations (MRO) materials.
Fastenal serves manufacturers, construction companies, contractors, government organizations and other commercial customers. Its offerings are delivered through a network of branch locations, customer-specific onsite operations, industrial vending machines, e-commerce platforms and other supply-chain services designed to help customers manage inventory and reduce procurement time.
Founded in 1967 by Bob Kierlin in Winona, Minnesota, Fastenal has expanded from a regional fastener supplier into an international industrial distributor.
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Engineers Gate Manager LP increased its stake in shares of Fastenal Company (NASDAQ:FAST – Free Report) by 283.4% during the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 25,910 shares of the company’s stock after buying an additional 19,152 shares during the period. Engineers Gate Manager LP’s holdings in Fastenal were worth $1,244,000 as of its most recent filing with the Securities and Exchange Commission.
Several other hedge funds and other institutional investors have also made changes to their positions in FAST. Elyxium Wealth LLC acquired a new position in shares of Fastenal in the fourth quarter worth $25,000. Palladiem LLC acquired a new stake in shares of Fastenal during the fourth quarter worth $25,000. Evergreen Advisors LLC purchased a new stake in shares of Fastenal in the first quarter valued at $26,000. Mowery & Schoenfeld Wealth Management LLC acquired a new position in Fastenal in the second quarter valued at $26,000. Finally, MV Capital Management Inc. acquired a new position in Fastenal in the fourth quarter valued at $29,000. Institutional investors and hedge funds own 81.38% of the company’s stock.
Insider Transactions at Fastenal In other news, Director Michael Ancius sold 3,000 shares of the stock in a transaction dated Tuesday, July 28th. The shares were sold at an average price of $49.00, for a total transaction of $147,000.00. Following the transaction, the director owned 58,690 shares of the company’s stock, valued at approximately $2,875,810. This trade represents a 4.86% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Rita J. Heise sold 34,964 shares of Fastenal stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $50.05, for a total value of $1,749,948.20. Following the completion of the transaction, the director owned 20,000 shares of the company’s stock, valued at $1,001,000. This trade represents a 63.61% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Corporate insiders own 0.28% of the company’s stock.
Fastenal Stock Performance Shares of FAST opened at $49.18 on Friday. The business’s 50 day moving average is $49.00 and its two-hundred day moving average is $46.82. Fastenal Company has a 52-week low of $38.97 and a 52-week high of $52.92. The firm has a market cap of $56.43 billion, a price-to-earnings ratio of 41.68, a PEG ratio of 3.06 and a beta of 0.72. The company has a quick ratio of 2.21, a current ratio of 4.18 and a debt-to-equity ratio of 0.01. Fastenal (NASDAQ:FAST – Get Free Report) last released its quarterly earnings results on Tuesday, July 14th. The company reported $0.33 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.33. Fastenal had a net margin of 15.45% and a return on equity of 34.03%. The business had revenue of $2.39 billion during the quarter, compared to the consensus estimate of $2.34 billion. During the same quarter last year, the company earned $0.29 earnings per share. The business’s quarterly revenue was up 14.7% compared to the same quarter last year. Analysts forecast that Fastenal Company will post 1.26 EPS for the current fiscal year.
Fastenal Increases Dividend The business also recently announced a quarterly dividend, which was paid on Tuesday, August 25th. Stockholders of record on Tuesday, July 28th were paid a $0.26 dividend. This is a boost from Fastenal’s previous quarterly dividend of $0.24. The ex-dividend date was Tuesday, July 28th. This represents a $1.04 dividend on an annualized basis and a dividend yield of 2.1%. Fastenal’s dividend payout ratio (DPR) is currently 88.14%.
Wall Street Analyst Weigh In A number of brokerages have issued reports on FAST. DA Davidson reissued a “neutral” rating and issued a $46.00 price target on shares of Fastenal in a research note on Wednesday, July 15th. Weiss Ratings downgraded shares of Fastenal from a “buy (b)” rating to a “buy (b-)” rating in a research note on Friday, September 11th. Barclays cut their target price on Fastenal from $47.00 to $46.00 and set an “equal weight” rating on the stock in a research report on Thursday, July 16th. Morgan Stanley boosted their price target on Fastenal from $48.00 to $52.00 and gave the company an “equal weight” rating in a research report on Thursday, July 16th. Finally, William Blair reissued an “outperform” rating on shares of Fastenal in a research note on Friday, September 4th. Six investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $49.50.
Check Out Our Latest Stock Report on FAST
About Fastenal (Free Report)
Fastenal Company (NASDAQ: FAST) is a distributor of industrial and construction supplies. The company provides fasteners such as bolts, nuts, screws and related hardware, along with safety products, tools, material-handling equipment, welding supplies, janitorial products and other maintenance, repair and operations (MRO) materials.
Fastenal serves manufacturers, construction companies, contractors, government organizations and other commercial customers. Its offerings are delivered through a network of branch locations, customer-specific onsite operations, industrial vending machines, e-commerce platforms and other supply-chain services designed to help customers manage inventory and reduce procurement time.
Founded in 1967 by Bob Kierlin in Winona, Minnesota, Fastenal has expanded from a regional fastener supplier into an international industrial distributor.
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Investors might want to bet on Fastenal (FAST - Free Report) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.
The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.
As such, the Zacks rating upgrade for Fastenal is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Fastenal imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for FastenalThis maker of industrial and construction fasteners is expected to earn $1.26 per share for the fiscal year ending December 2026, which represents no year-over-year change.
Analysts have been steadily raising their estimates for Fastenal. Over the past three months, the Zacks Consensus Estimate for the company has increased 1.9%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Fastenal to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Baird Financial Group Inc. increased its position in Fastenal Company (NASDAQ:FAST – Free Report) by 1.2% in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 15,561,007 shares of the company’s stock after buying an additional 183,238 shares during the quarter. Fastenal accounts for approximately 1.0% of Baird Financial Group Inc.’s investment portfolio, making the stock its 22nd largest position. Baird Financial Group Inc. owned approximately 1.36% of Fastenal worth $747,395,000 at the end of the most recent quarter.
Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Brighton Jones LLC bought a new position in Fastenal during the 4th quarter worth $496,000. Integrated Wealth Concepts LLC lifted its stake in shares of Fastenal by 2.4% in the first quarter. Integrated Wealth Concepts LLC now owns 6,276 shares of the company’s stock worth $487,000 after acquiring an additional 147 shares during the period. Quantbot Technologies LP bought a new stake in Fastenal in the second quarter valued at approximately $158,000. Jump Financial LLC acquired a new stake in Fastenal during the 2nd quarter valued at approximately $2,199,000. Finally, Cary Street Partners Financial LLC raised its holdings in Fastenal by 111.0% during the 2nd quarter. Cary Street Partners Financial LLC now owns 3,367 shares of the company’s stock worth $141,000 after purchasing an additional 1,771 shares during the last quarter. 81.38% of the stock is currently owned by institutional investors and hedge funds.
Insider Transactions at Fastenal In other Fastenal news, Director Michael Ancius sold 3,000 shares of the business’s stock in a transaction that occurred on Tuesday, July 28th. The stock was sold at an average price of $49.00, for a total transaction of $147,000.00. Following the completion of the sale, the director directly owned 58,690 shares of the company’s stock, valued at approximately $2,875,810. The trade was a 4.86% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Rita J. Heise sold 34,964 shares of the stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $50.05, for a total value of $1,749,948.20. Following the completion of the sale, the director directly owned 20,000 shares of the company’s stock, valued at approximately $1,001,000. This trade represents a 63.61% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.28% of the stock is currently owned by insiders.
Analyst Upgrades and Downgrades FAST has been the subject of several recent analyst reports. Barclays decreased their price objective on shares of Fastenal from $47.00 to $46.00 and set an “equal weight” rating for the company in a research report on Thursday, July 16th. William Blair reissued an “outperform” rating on shares of Fastenal in a research report on Friday. Sanford C. Bernstein restated an “underperform” rating on shares of Fastenal in a research report on Wednesday, July 15th. Weiss Ratings raised Fastenal from a “buy (b-)” rating to a “buy (b)” rating in a research note on Wednesday, August 26th. Finally, Rothschild & Co Redburn set a $55.00 price target on Fastenal and gave the company a “buy” rating in a research note on Monday, July 13th. Six equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $49.17. Read Our Latest Analysis on FAST
Fastenal Stock Performance Shares of FAST opened at $49.38 on Wednesday. The stock has a 50-day moving average of $48.78 and a 200-day moving average of $46.64. Fastenal Company has a one year low of $38.97 and a one year high of $52.92. The company has a debt-to-equity ratio of 0.01, a current ratio of 4.18 and a quick ratio of 2.21. The company has a market cap of $56.66 billion, a PE ratio of 41.85, a P/E/G ratio of 3.09 and a beta of 0.72.
Fastenal (NASDAQ:FAST – Get Free Report) last released its quarterly earnings data on Tuesday, July 14th. The company reported $0.33 EPS for the quarter, meeting the consensus estimate of $0.33. The firm had revenue of $2.39 billion during the quarter, compared to the consensus estimate of $2.34 billion. Fastenal had a return on equity of 34.03% and a net margin of 15.45%.The company’s quarterly revenue was up 14.7% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.29 earnings per share. On average, equities research analysts predict that Fastenal Company will post 1.26 EPS for the current fiscal year.
Fastenal Increases Dividend The firm also recently declared a quarterly dividend, which was paid on Tuesday, August 25th. Investors of record on Tuesday, July 28th were given a $0.26 dividend. This represents a $1.04 annualized dividend and a yield of 2.1%. The ex-dividend date of this dividend was Tuesday, July 28th. This is a positive change from Fastenal’s previous quarterly dividend of $0.24. Fastenal’s payout ratio is 88.14%.
Fastenal Company Profile (Free Report)
Fastenal (NASDAQ: FAST) is a wholesale distributor of industrial and construction supplies, best known for its broad assortment of fasteners such as bolts, nuts, screws and anchors. Founded in Winona, Minnesota, Fastenal has grown from a regional supplier into a national and international distributor serving a wide range of end markets, including manufacturing, construction, maintenance, repair and operations (MRO), and government customers. The company is publicly traded and operates through a network of locally staffed branches combined with national distribution capabilities.
Product offerings extend beyond fasteners to include tools, safety and personal protective equipment, power transmission components, cutting and welding supplies, janitorial and material handling items, and other industrial consumables.
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The Industrial Products group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Fastenal (FAST - Free Report) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Industrial Products sector should help us answer this question.
Fastenal is a member of the Industrial Products sector. This group includes 187 individual stocks and currently holds a Zacks Sector Rank of #5. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Fastenal is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for FAST's full-year earnings has moved 1.8% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that FAST has returned about 19.4% since the start of the calendar year. In comparison, Industrial Products companies have returned an average of 13.7%. This means that Fastenal is performing better than its sector in terms of year-to-date returns.
Kubota Corp. (KUBTY - Free Report) is another Industrial Products stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 34.1%.
The consensus estimate for Kubota Corp.'s current year EPS has increased 56.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Fastenal is a member of the Industrial Services industry, which includes 16 individual companies and currently sits at #185 in the Zacks Industry Rank. On average, stocks in this group have gained 7.4% this year, meaning that FAST is performing better in terms of year-to-date returns.
In contrast, Kubota Corp. falls under the Manufacturing - Farm Equipment industry. Currently, this industry has 6 stocks and is ranked #219. Since the beginning of the year, the industry has moved +47.7%.
Investors with an interest in Industrial Products stocks should continue to track Fastenal and Kubota Corp.. These stocks will be looking to continue their solid performance.
Key Takeaways Fastenal's construction sales grew 17% in Q2 2026, extending the strong pace for a second quarter.Infrastructure and data center projects are emerging as key sources of construction demand.Daily sales growth accelerated to 14.7%, helped by customer wins, share of wallet and pricing. Fastenal Company (FAST - Free Report) is gaining from stronger activity across construction markets, with infrastructure and data center projects emerging as important sources of demand. The company’s construction sales grew approximately 17% in the second quarter of 2026, marking the second consecutive quarter of growth at this pace. Fastenal also saw strong activity in electrical and utility markets.
The company’s exposure to project-driven demand provides an opportunity to build on this momentum. Infrastructure and data center projects can support demand for industrial supplies and create opportunities for the company to deepen customer relationships. Larger customer engagement has also been a common factor behind the strongest areas of demand.
The broader industrial environment provides additional support. U.S. PMI averaged slightly above 53 in the second quarter, up from 52 in the first quarter. Industrial production was also slightly positive year over year in April and May. The company benefited from this gradual improvement in industrial activity, along with new customer wins and higher share of wallet.
Fastenal’s overall daily sales growth further reflects the stronger demand environment. Daily sales increased 14.7% in the second quarter, compared with 12.4% in the first quarter. The company attributed the growth to new customer wins, increased share of wallet, pricing and improved industrial production.
However, the company faces mixed demand across end markets. Fastenal experienced softer trends in markets linked to discretionary consumer spending. A slowdown in broader economic activity could therefore weigh on construction demand.
Infrastructure and data center activity remain important growth areas for the company’s construction business. Sustained project activity in these markets would provide a strong base for Fastenal to maintain its current growth momentum and support overall sales.
How Fastenal Stacks Up Against PeersFastenal operates in an industrial distribution market where construction activity, project demand and customer expansion are important growth factors. MSC Industrial Direct Co., Inc. (MSM - Free Report) and SiteOne Landscape Supply, Inc. (SITE - Free Report) also have exposure to industrial and construction-related demand, although the end-market mix differs across the companies.
MSC Industrial is seeing signs of improvement in the broader industrial market, with positive industrial production readings across most major manufacturing end markets. Average daily sales increased 7.8% year over year in the third quarter of fiscal 2026. MSC Industrial is also expanding its vending and in-plant footprint, with vending machines increasing 7% year over year to approximately 30,800. Sales through vending rose 15%, while sales to customers with in-plant programs increased 16%.
SiteOne has a more direct exposure to construction through new residential and commercial markets. New commercial construction accounts for 14% of sales and has remained solid, although SiteOne expects the market to be flat in 2026. Project services bidding activity was slightly positive year over year, providing an indication of ongoing project demand. However, new residential construction, which represents 20% of sales, is expected to decline at a high-single-digit rate this year.
Fastenal has a stronger growth profile in construction at present, with exposure to infrastructure, data center, electrical and utility projects. This project-driven demand gives the company opportunities to deepen customer relationships and capture additional business from larger projects. If infrastructure and data center activity remains firm, the company could sustain construction momentum and support overall sales growth.
FAST Stock’s Price Performance & Valuation TrendShares of this wholesale distributor of industrial and construction supplies have gained 27.5% year to date, outperforming the Zacks Industrial Services industry, the broader Industrial Products sector and the S&P 500 Index.
FAST YTD Share Price Performance
Image Source: Zacks Investment Research
FAST stock is currently trading at a premium compared with its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 38.14, as shown in the chart below.
FAST P/E Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
Earnings Estimate Revision of FASTFAST’s earnings estimates for 2026 and 2027 have increased over the past 30 days. The estimated figures for 2026 and 2027 imply year-over-year growth of 15.6% and 10.1%, respectively.
Image Source: Zacks Investment Research
Fastenal currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Beacon Pointe Advisors LLC raised its holdings in shares of Fastenal Company (NASDAQ:FAST – Free Report) by 15.9% in the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 270,842 shares of the company’s stock after buying an additional 37,198 shares during the quarter. Beacon Pointe Advisors LLC’s holdings in Fastenal were worth $13,009,000 as of its most recent SEC filing.
Several other hedge funds and other institutional investors have also modified their holdings of FAST. Integrated Wealth Concepts LLC grew its position in Fastenal by 2.4% in the 1st quarter. Integrated Wealth Concepts LLC now owns 6,276 shares of the company’s stock worth $487,000 after purchasing an additional 147 shares during the last quarter. Tandem Investment Advisors Inc. raised its position in shares of Fastenal by 1.8% during the first quarter. Tandem Investment Advisors Inc. now owns 12,356 shares of the company’s stock valued at $573,000 after buying an additional 224 shares during the last quarter. Sittner & Nelson LLC raised its position in shares of Fastenal by 0.3% during the fourth quarter. Sittner & Nelson LLC now owns 68,495 shares of the company’s stock valued at $2,749,000 after buying an additional 226 shares during the last quarter. Sound Income Strategies LLC lifted its stake in shares of Fastenal by 12.9% in the first quarter. Sound Income Strategies LLC now owns 2,025 shares of the company’s stock valued at $94,000 after buying an additional 232 shares during the period. Finally, Pure Financial Advisors LLC grew its position in Fastenal by 3.4% during the second quarter. Pure Financial Advisors LLC now owns 7,161 shares of the company’s stock worth $344,000 after buying an additional 235 shares in the last quarter. Institutional investors and hedge funds own 81.38% of the company’s stock.
Insider Buying and Selling In other news, Director Rita J. Heise sold 34,964 shares of the firm’s stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $50.05, for a total value of $1,749,948.20. Following the transaction, the director directly owned 20,000 shares in the company, valued at $1,001,000. This trade represents a 63.61% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, Director Michael J. Ancius sold 3,000 shares of the business’s stock in a transaction dated Tuesday, July 28th. The shares were sold at an average price of $49.00, for a total value of $147,000.00. Following the completion of the transaction, the director owned 58,690 shares in the company, valued at $2,875,810. The trade was a 4.86% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 0.28% of the company’s stock.
Analysts Set New Price Targets Several research analysts recently issued reports on FAST shares. Morgan Stanley increased their price target on shares of Fastenal from $48.00 to $52.00 and gave the stock an “equal weight” rating in a research report on Thursday, July 16th. Wolfe Research restated an “underperform” rating and set a $47.00 price objective on shares of Fastenal in a research report on Thursday, July 9th. Rothschild & Co Redburn set a $55.00 price objective on Fastenal and gave the stock a “buy” rating in a report on Monday, July 13th. Sanford C. Bernstein reiterated an “underperform” rating on shares of Fastenal in a research note on Wednesday, July 15th. Finally, Barclays dropped their price target on Fastenal from $47.00 to $46.00 and set an “equal weight” rating for the company in a report on Thursday, July 16th. Five analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, Fastenal currently has an average rating of “Hold” and an average price target of $49.17. View Our Latest Analysis on Fastenal
Fastenal Trading Down 2.6% Shares of NASDAQ:FAST opened at $49.78 on Friday. The business’s 50 day simple moving average is $48.45 and its 200 day simple moving average is $46.50. Fastenal Company has a 1 year low of $38.97 and a 1 year high of $52.92. The company has a debt-to-equity ratio of 0.01, a current ratio of 4.18 and a quick ratio of 2.21. The company has a market capitalization of $57.12 billion, a P/E ratio of 42.19, a P/E/G ratio of 3.19 and a beta of 0.72.
Fastenal (NASDAQ:FAST – Get Free Report) last released its earnings results on Tuesday, July 14th. The company reported $0.33 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.33. The firm had revenue of $2.39 billion during the quarter, compared to the consensus estimate of $2.34 billion. Fastenal had a return on equity of 34.03% and a net margin of 15.45%.The company’s revenue was up 14.7% compared to the same quarter last year. During the same period in the prior year, the company posted $0.29 EPS. On average, research analysts anticipate that Fastenal Company will post 1.26 EPS for the current fiscal year.
Fastenal Increases Dividend The company also recently disclosed a quarterly dividend, which was paid on Tuesday, August 25th. Investors of record on Tuesday, July 28th were given a dividend of $0.26 per share. This is a positive change from Fastenal’s previous quarterly dividend of $0.24. This represents a $1.04 annualized dividend and a yield of 2.1%. The ex-dividend date of this dividend was Tuesday, July 28th. Fastenal’s dividend payout ratio (DPR) is currently 88.14%.
Fastenal Profile (Free Report)
Fastenal (NASDAQ: FAST) is a wholesale distributor of industrial and construction supplies, best known for its broad assortment of fasteners such as bolts, nuts, screws and anchors. Founded in Winona, Minnesota, Fastenal has grown from a regional supplier into a national and international distributor serving a wide range of end markets, including manufacturing, construction, maintenance, repair and operations (MRO), and government customers. The company is publicly traded and operates through a network of locally staffed branches combined with national distribution capabilities.
Product offerings extend beyond fasteners to include tools, safety and personal protective equipment, power transmission components, cutting and welding supplies, janitorial and material handling items, and other industrial consumables.
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Barbara Oil Co. acquired a new stake in Fastenal Company (NASDAQ:FAST – Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm acquired 32,000 shares of the company’s stock, valued at approximately $1,548,000.
Several other hedge funds and other institutional investors have also recently modified their holdings of the company. Wiregrass Investment Management LLC acquired a new stake in shares of Fastenal in the 4th quarter worth about $1,020,000. Swiss Life Asset Management Ltd boosted its stake in Fastenal by 2.7% during the 4th quarter. Swiss Life Asset Management Ltd now owns 1,491,994 shares of the company’s stock valued at $59,874,000 after purchasing an additional 39,406 shares during the last quarter. Fideuram Asset Management Ireland dac acquired a new position in Fastenal during the 4th quarter valued at about $4,041,000. National Pension Service increased its holdings in Fastenal by 2.9% during the 4th quarter. National Pension Service now owns 1,603,839 shares of the company’s stock worth $64,362,000 after purchasing an additional 45,260 shares in the last quarter. Finally, Thrivent Financial for Lutherans increased its holdings in Fastenal by 16.4% during the 4th quarter. Thrivent Financial for Lutherans now owns 6,820,172 shares of the company’s stock worth $273,699,000 after purchasing an additional 959,731 shares in the last quarter. Institutional investors own 81.38% of the company’s stock.
Insider Buying and Selling at Fastenal In related news, Director Michael J. Ancius sold 3,000 shares of the stock in a transaction dated Tuesday, July 28th. The shares were sold at an average price of $49.00, for a total transaction of $147,000.00. Following the completion of the transaction, the director owned 58,690 shares in the company, valued at approximately $2,875,810. This represents a 4.86% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Rita J. Heise sold 34,964 shares of the firm’s stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $50.05, for a total transaction of $1,749,948.20. Following the sale, the director owned 20,000 shares of the company’s stock, valued at $1,001,000. This trade represents a 63.61% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.28% of the company’s stock.
Analysts Set New Price Targets FAST has been the subject of several analyst reports. DA Davidson restated a “neutral” rating and issued a $46.00 target price on shares of Fastenal in a report on Wednesday, July 15th. Morgan Stanley upped their price target on Fastenal from $48.00 to $52.00 and gave the stock an “equal weight” rating in a report on Thursday, July 16th. Weiss Ratings lowered Fastenal from a “buy (b)” rating to a “buy (b-)” rating in a research report on Tuesday, July 21st. Barclays dropped their price objective on Fastenal from $47.00 to $46.00 and set an “equal weight” rating on the stock in a research note on Thursday, July 16th. Finally, Rothschild & Co Redburn set a $55.00 price objective on shares of Fastenal and gave the stock a “buy” rating in a report on Monday, July 13th. Five investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Fastenal has an average rating of “Hold” and an average target price of $49.17. Check Out Our Latest Research Report on FAST
Fastenal Price Performance Shares of NASDAQ FAST opened at $51.26 on Monday. Fastenal Company has a twelve month low of $38.97 and a twelve month high of $52.92. The stock’s 50 day moving average price is $47.96 and its 200-day moving average price is $46.38. The company has a market capitalization of $58.82 billion, a PE ratio of 43.44, a PEG ratio of 3.20 and a beta of 0.72. The company has a quick ratio of 2.21, a current ratio of 4.18 and a debt-to-equity ratio of 0.01.
Fastenal (NASDAQ:FAST – Get Free Report) last issued its quarterly earnings results on Tuesday, July 14th. The company reported $0.33 EPS for the quarter, meeting analysts’ consensus estimates of $0.33. The company had revenue of $2.39 billion during the quarter, compared to the consensus estimate of $2.34 billion. Fastenal had a return on equity of 34.03% and a net margin of 15.45%.Fastenal’s revenue was up 14.7% on a year-over-year basis. During the same period last year, the business posted $0.29 earnings per share. On average, equities analysts anticipate that Fastenal Company will post 1.26 EPS for the current year.
Fastenal Increases Dividend The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, August 25th. Shareholders of record on Tuesday, July 28th will be paid a $0.26 dividend. This is a boost from Fastenal’s previous quarterly dividend of $0.24. The ex-dividend date is Tuesday, July 28th. This represents a $1.04 dividend on an annualized basis and a yield of 2.0%. Fastenal’s dividend payout ratio is currently 88.14%.
Fastenal Profile (Free Report)
Fastenal (NASDAQ: FAST) is a wholesale distributor of industrial and construction supplies, best known for its broad assortment of fasteners such as bolts, nuts, screws and anchors. Founded in Winona, Minnesota, Fastenal has grown from a regional supplier into a national and international distributor serving a wide range of end markets, including manufacturing, construction, maintenance, repair and operations (MRO), and government customers. The company is publicly traded and operates through a network of locally staffed branches combined with national distribution capabilities.
Product offerings extend beyond fasteners to include tools, safety and personal protective equipment, power transmission components, cutting and welding supplies, janitorial and material handling items, and other industrial consumables.
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Key Takeaways FAST's FMI sales rose 16.4% YoY to $1.08 billion, reaching 44.6% of second-quarter sales.FMI automation supports replenishment efficiency, customer retention and fixed-cost leverage for FAST.FAST cut SG&A to 23.5% of sales, helping offset gross-margin pressure and hold operating margin at 21%. Fastenal Company (FAST - Free Report) is steadily expanding the role of its Fastenal Managed Inventory (FMI) platform, strengthening a technology-enabled service model that could support greater operating leverage over time. In the second quarter of 2026, FMI sales increased 16.4% year over year to $1.08 billion and represented 44.6% of total revenues, up from 44.1% a year ago. Weighted FASTBin and FASTVend signings rose 8.3% to 6,993 units, while the installed base increased 6.5% to 140,789 machine-equivalent units.
The leverage opportunity stems from FMI's ability to automate inventory management, improve replenishment efficiency and deepen customer integration. Management views FMI installations as leading indicators of future sales, retention and operating efficiency. As more customer spending moves through these systems, Fastenal can potentially support higher sales volumes without a proportionate increase in operating costs.
The second-quarter results provide evidence of that benefit. SG&A expenses improved to 23.5% of sales from 24.4% a year ago, helped by labor productivity and fixed-cost leverage. This offset a 75-basis-point decline in gross margin and allowed operating margin to remain at 21%. Fastenal's larger strategic accounts generally carry lower gross margins, but management believes their higher volumes improve fixed-cost absorption and operating efficiency. FMI is also supporting Fastenal's broader push toward larger customers. Contract sales rose 17.6% and represented 75.8% of quarterly sales, while customer sites generating at least $50,000 per month increased 16.5%.
Overall, Fastenal's rising 44.6% FMI sales mix appears capable of supporting greater operating leverage through automation, customer retention and fixed-cost efficiencies. While price/cost pressure and investment needs could limit near-term margin expansion, continued FMI penetration should strengthen the company's ability to convert sales growth into improved operating efficiency over time.
How Fastenal Stacks Up Against PeersFastenal competes in a distribution market increasingly shaped by digital tools, inventory automation and operating efficiency. MSC Industrial Direct Co., Inc. (MSM - Free Report) and SiteOne Landscape Supply, Inc. (SITE - Free Report) are pursuing similar productivity and customer-integration initiatives.
MSC Industrial is expanding its vending and in-plant solutions while improving productivity across its sales organization. In third-quarter fiscal 2026, vending installations increased 7% year over year to about 30,800 machines, while sales through vending rose 15% and represented roughly 20% of company sales. Sales to customers with in-plant programs increased 16% and accounted for about 21% of sales. MSC is also using automation and AI to reduce manual work and support growth without proportionate headcount increases.
SiteOne is also using digital tools and operational initiatives to improve customer engagement and productivity. The company's siteone.com sales increased more than 50% year to date, while regular active users rose about 40%. Management said digitally engaged customers are growing faster than the company average and that the platform helps increase market share while making associates more productive. SiteOne is pairing these digital initiatives with delivery efficiencies, branch optimization and tight SG&A management as it targets further EBITDA margin expansion.
Fastenal’s FMI platform remains a key competitive advantage, supporting customer integration, retention, share gains and greater operating efficiency as adoption expands.
FAST Stock’s Price Performance & Valuation TrendShares of this wholesale distributor of industrial and construction supplies have gained 26.2% year to date, outperforming the Zacks Industrial Services industry, the broader Industrial Products sector and the S&P 500 Index.
FAST YTD Share Price Performance
Image Source: Zacks Investment Research
FAST stock is currently trading at a premium compared with its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 37.84, as shown in the chart below.
FAST P/E Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
Earnings Estimate Revision of FASTFAST’s earnings estimates for 2026 and 2027 have increased over the past 30 days. The estimated figures for 2026 and 2027 imply year-over-year growth of 12.8% and 15.6%, respectively.
Image Source: Zacks Investment Research
Fastenal currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
B. Metzler seel. Sohn & Co. AG purchased a new position in shares of Fastenal Company (NASDAQ:FAST – Free Report) in the 2nd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm purchased 689,676 shares of the company’s stock, valued at approximately $33,125,000. B. Metzler seel. Sohn & Co. AG owned 0.06% of Fastenal at the end of the most recent reporting period.
Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Mowery & Schoenfeld Wealth Management LLC acquired a new position in Fastenal during the second quarter worth $26,000. Evergreen Advisors LLC purchased a new position in Fastenal in the first quarter worth $26,000. Palladiem LLC acquired a new stake in Fastenal in the fourth quarter valued at $25,000. Elyxium Wealth LLC acquired a new stake in Fastenal in the fourth quarter valued at $25,000. Finally, MV Capital Management Inc. purchased a new stake in shares of Fastenal during the 4th quarter worth $29,000. 81.38% of the stock is currently owned by hedge funds and other institutional investors.
Fastenal Trading Down 1.5% NASDAQ:FAST opened at $50.66 on Friday. The company has a market capitalization of $58.13 billion, a PE ratio of 42.93, a price-to-earnings-growth ratio of 3.21 and a beta of 0.72. The company has a quick ratio of 2.21, a current ratio of 4.18 and a debt-to-equity ratio of 0.01. Fastenal Company has a 52-week low of $38.97 and a 52-week high of $52.92. The stock has a fifty day simple moving average of $47.86 and a 200-day simple moving average of $46.33.
Fastenal (NASDAQ:FAST – Get Free Report) last issued its quarterly earnings data on Tuesday, July 14th. The company reported $0.33 EPS for the quarter, meeting analysts’ consensus estimates of $0.33. Fastenal had a net margin of 15.45% and a return on equity of 34.03%. The firm had revenue of $2.39 billion for the quarter, compared to analysts’ expectations of $2.34 billion. During the same period in the prior year, the company earned $0.29 EPS. The firm’s revenue was up 14.7% on a year-over-year basis. On average, equities research analysts expect that Fastenal Company will post 1.26 earnings per share for the current fiscal year. Fastenal Increases Dividend The firm also recently declared a quarterly dividend, which will be paid on Tuesday, August 25th. Stockholders of record on Tuesday, July 28th will be given a $0.26 dividend. This is a boost from Fastenal’s previous quarterly dividend of $0.24. This represents a $1.04 annualized dividend and a dividend yield of 2.1%. The ex-dividend date is Tuesday, July 28th. Fastenal’s dividend payout ratio (DPR) is currently 88.14%.
Insider Activity at Fastenal In related news, Director Michael J. Ancius sold 3,000 shares of the company’s stock in a transaction that occurred on Tuesday, July 28th. The stock was sold at an average price of $49.00, for a total value of $147,000.00. Following the sale, the director owned 58,690 shares of the company’s stock, valued at approximately $2,875,810. This represents a 4.86% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Rita J. Heise sold 34,964 shares of the company’s stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $50.05, for a total value of $1,749,948.20. Following the completion of the sale, the director directly owned 20,000 shares in the company, valued at approximately $1,001,000. The trade was a 63.61% decrease in their position. The SEC filing for this sale provides additional information. 0.28% of the stock is owned by corporate insiders.
Analysts Set New Price Targets A number of equities analysts have recently weighed in on the stock. Barclays lowered their price target on shares of Fastenal from $47.00 to $46.00 and set an “equal weight” rating on the stock in a research note on Thursday, July 16th. Sanford C. Bernstein reiterated an “underperform” rating on shares of Fastenal in a research note on Wednesday, July 15th. Rothschild & Co Redburn set a $55.00 price objective on shares of Fastenal and gave the stock a “buy” rating in a report on Monday, July 13th. DA Davidson restated a “neutral” rating and set a $46.00 target price on shares of Fastenal in a research report on Wednesday, July 15th. Finally, Morgan Stanley increased their target price on shares of Fastenal from $48.00 to $52.00 and gave the company an “equal weight” rating in a report on Thursday, July 16th. Five research analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $49.17.
Get Our Latest Research Report on FAST
Fastenal Profile (Free Report)
Fastenal (NASDAQ: FAST) is a wholesale distributor of industrial and construction supplies, best known for its broad assortment of fasteners such as bolts, nuts, screws and anchors. Founded in Winona, Minnesota, Fastenal has grown from a regional supplier into a national and international distributor serving a wide range of end markets, including manufacturing, construction, maintenance, repair and operations (MRO), and government customers. The company is publicly traded and operates through a network of locally staffed branches combined with national distribution capabilities.
Product offerings extend beyond fasteners to include tools, safety and personal protective equipment, power transmission components, cutting and welding supplies, janitorial and material handling items, and other industrial consumables.
Read More Five stocks we like better than Fastenal 3 Energy Stocks Raising Dividends as the Sector Surges 5 Reasons the S&P 500 Could Keep Rallying Through Year-End Walmart’s Post-Earnings Drop Could Be a Buying Opportunity The Trade Desk’s Earnings Miss Raises a Bigger Question About Its AI Future Want to see what other hedge funds are holding FAST? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Fastenal Company (NASDAQ:FAST – Free Report).
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The Industrial Products group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Fastenal (FAST - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Industrial Products peers, we might be able to answer that question.
Fastenal is one of 186 individual stocks in the Industrial Products sector. Collectively, these companies sit at #5 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Fastenal is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for FAST's full-year earnings has moved 2% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that FAST has returned about 27.7% since the start of the calendar year. In comparison, Industrial Products companies have returned an average of 20.4%. This means that Fastenal is performing better than its sector in terms of year-to-date returns.
Kubota Corp. (KUBTY - Free Report) is another Industrial Products stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 20.5%.
Over the past three months, Kubota Corp.'s consensus EPS estimate for the current year has increased 37.7%. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Fastenal is a member of the Industrial Services industry, which includes 16 individual companies and currently sits at #200 in the Zacks Industry Rank. On average, this group has gained an average of 12.6% so far this year, meaning that FAST is performing better in terms of year-to-date returns.
On the other hand, Kubota Corp. belongs to the Manufacturing - Farm Equipment industry. This 6-stock industry is currently ranked #102. The industry has moved +25.5% year to date.
Investors with an interest in Industrial Products stocks should continue to track Fastenal and Kubota Corp.. These stocks will be looking to continue their solid performance.
Fielder Capital Group LLC bought a new position in Fastenal Company (NASDAQ: FAST) in the undefined quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor bought 10,075 shares of the company's stock, valued at approximately $484,000. Other institutional investors and hedge funds
A month has gone by since the last earnings report for Fastenal (FAST - Free Report) . Shares have added about 15.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Fastenal due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
Fastenal Q2 Earnings Meet Estimates, Sales Beat on Favorable PricingFastenal reported mixed second-quarter 2026 results, with earnings meeting the Zacks Consensus Estimate and net sales beating the same. Conversely, year over year, both metrics grew notably. Fastenal continued to benefit from customer signings secured since the first quarter of 2024. Contract customer daily sales increased 17.6% year over year and represented 75.8% of quarterly revenues, up from 73.2% a year earlier.
Fastenal’s Q2 Earnings & Sales in DetailFastenal’s quarterly earnings of 33 cents per share were in line with the Zacks Consensus Estimate, but increased 15.9% year over year from 29 cents per share.
Net sales rose 14.7% year over year to $2.39 billion and surpassed the consensus mark of $2.34 billion by 1.9%. Growth reflected stronger customer contract signings, pricing actions and improved industrial production. Daily sales also advanced 14.7%.
FAST’s Daily Sales Growth TrendsManufacturing daily sales increased 14.9%, with the segment contributing 75.9% of total sales. Heavy Manufacturing led the improvement with 18.1% growth and represented 44.1% of revenues. Other Manufacturing sales rose 10.8%.
Non-residential Construction daily sales advanced 17%, marking continued growth in the market. Other End-Market sales increased 14.1%, aided by transportation and warehousing customers. Total non-manufacturing daily sales climbed 15.1%.
Direct-Material daily sales grew 16.5% and accounted for 39.2% of revenues. Direct Fasteners and Hardware increased 16.8%, while direct cutting tools and abrasives rose 14.8%. Direct Non-Fasteners and Hardware sales improved 16.7%. Indirect-Material daily sales increased 14.1% and represented 60.8% of revenues. Indirect Fastener sales rose 14.6%, safety products increased 13.1%, and other indirect product lines advanced 14.6%. Direct materials slightly outpaced indirect products due to stronger fastener demand and manufacturing activity.
Fastenal’s Digital Sales Outpace Company GrowthDigital Footprint sales increased 16.2% to $1.49 billion and represented 61.6% of revenues, up from 61% in the prior-year quarter. The metric combines sales through Fastenal Managed Inventory technology with eBusiness sales that do not overlap with those services. FMI sales rose 16.4% to $1.08 billion and accounted for 44.6% of revenues. FAST signed 6,993 weighted FASTBin and FASTVend devices, up 8.3%, while the installed base grew 6.5% to 140,789 units. eBusiness sales increased 12.6% to $711.9 million.
FAST Holds Operating Margin Despite PressureGross margin contracted 75 basis points (bps) to 44.6%. Unfavorable net price-cost reduced the margin by about 40 bps, while customer mix, transportation costs and rebate activity created additional pressure. Larger customers generally carry lower gross margins but produce greater profit dollars and operating efficiencies.
Selling, general and administrative expenses improved 80 bps to 23.5% of sales. Labor productivity and fixed-cost leverage offset higher incentive compensation, transportation and travel expenses. As a result, operating margin remained unchanged at 21%, while operating income increased 15.1% to $501.8 million.
Fastenal Generates Solid Cash and Returns CapitalNet income increased year over year by 15.9% to $382.8 million. Operating cash flow totaled $265.7 million, down 4.6%, and represented 69.4% of net income. Accounts receivable increased 17.6%, while inventories edged up 0.5% and accounts payable rose 25.2%. The company returned $305.1 million to shareholders through $275.4 million in dividends and $29.7 million in share repurchases. Total debt declined to $120 million from $230 million a year ago.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates review.
VGM ScoresAt this time, Fastenal has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock was allocated a score of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Fastenal has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
On August 05, 2026, we conducted a DCF analysis for Fastenal Co (FAST), which has shown a positive price performance in recent months, with a year-to-date incre
Michael J. Ancius, a Director at Fastenal Company (FAST +0.88%), executed a sale of 3,000 shares of common stock on July 28, 2026, according to a recent SEC Form 4 filing.
Transaction summaryMetricValueTransaction value$147,000Shares sold3,000Post-transaction shares (directly held)58,690Post-transaction shares (indirectly held)13,008Post-transaction value$3.45 millionTransaction value based on SEC Form 4 weighted average sale price ($49.00); post-transaction value based on July 28, 2026, market close ($48.10).
Key questionsWhat were the mechanics of this derivative transaction?
Michael J. Ancius exercised 3,000 options at a strike price of $13.75 and sold the resulting shares at a weighted-average price of $49.00. This "cashless" exercise allowed the director to realize the gains from the option awards without increasing his long-term capital commitment to the company.How is the remaining equity position structured?
Following the sale, the director's direct holdings include 58,690 shares: 46,668 held in a revocable trust shared with his wife and 12,022 held in a self-directed IRA. The 13,008 shares held indirectly are maintained within a Retirement Savings 401(k) Plan administered by the company.What is the director's remaining exposure to the stock?
In addition to the 71,698 shares of common stock held after this transaction, the director continues to hold 7,448 derivative securities, including stock options. This indicates continued participation in the company's equity performance beyond the shares currently held in the portfolio.How does the transaction price compare to recent market performance?
The sale was executed at $49.00 per share, while Fastenal shares closed at $48.10 on the day of the transaction. As of July 28, 2026, market close, the stock has generated a one-year total return of 3%.Company OverviewMetricValueShare Price (as of market close 2026-07-28)$48.10Market Capitalization$54.8 billionRevenue (TTM)$8.7 billionNet Income (TTM)$1.4 billionCompany SnapshotFastenal operates as a global wholesale distributor of fasteners, tools, and industrial supplies, including threaded bolts, nuts, screws, studs, washers, and complementary products essential for manufacturing, construction, and equipment maintenance applications.The company generates revenue through a diversified distribution model, leveraging an extensive network of locations across North America and international markets to supply industrial customers with mission-critical materials and services.Fastenal serves a broad customer base, including manufacturers, construction companies, maintenance and repair operations, and original equipment manufacturers across multiple end markets and geographies.Fastenal is a leading global industrial distributor with $8.7 billion in TTM revenue and a market capitalization of $54.8 billion, employing 21,339 personnel. The company maintains a competitive position through its extensive distribution infrastructure spanning North America and international markets, enabling efficient supply chain delivery to industrial and construction customers. With net income of $1.4 billion TTM, Fastenal demonstrates strong operational profitability and cash generation.
What this transaction means for investorsMichael J. Ancius, an executive at Fastenal Company (FAST), recently sold 3,000 shares of the company, according to a recent SEC filing. Here are some key takeaways for investors.
First, it’s important to note that insiders sell shares for many reasons. Therefore, investors shouldn’t conclude that a sale means insiders believe the stock price is overvalued. Sales can occur to generate cash flow, pay taxes, or as part of a larger estate planning process.
Turning to Fastenal specifically, the stock has performed well over the last five years. During that period, Fastenal has delivered a total return (including dividends) of 92%, with a compound annual growth rate (CAGR) of 14.0%. The S&P 500, by comparison, has generated an 81% total return, with a 12.6% CAGR.
The company recently reported earnings on July 14, 2026, delivering a solid quarter. Revenue increased by about 15% year-over-year, and the company met earnings per share expectations of $0.33. One area of weakness was gross margin, which now stands at 42.8%, down from 44.0% in 2022. Nonetheless, Fastenal appears to be navigating the new normal of supply chain challenges and tariffs reasonably well.
In summary, Fastenal remains a company to watch for investors seeking exposure to the industrial sector.
Investors in Fastenal Company (FAST - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the Sept. 18, 2026 $25.00 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?Clearly, options traders are pricing in a big move for Fastenal shares, but what is the fundamental picture for the company? Currently, Fastenal is a Zacks Rank #2 (Buy) in the Industrial Services industry that ranks in the Bottom 33% of our Zacks Industry Rank. Over the last 60 days, four analysts have increased their earnings estimates for the current quarter, while none have dropped their estimates. The net effect has taken our Zacks Consensus Estimate for the current quarter from 32 cents per share to 33 cents in that period.
Given the way analysts feel about Fastenal right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Arrowstreet Capital Limited Partnership lifted its position in Fastenal Company (NASDAQ:FAST – Free Report) by 78.6% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 1,154,661 shares of the company’s stock after buying an additional 508,052 shares during the quarter. Arrowstreet Capital Limited Partnership owned about 0.10% of Fastenal worth $53,576,000 as of its most recent SEC filing.
A number of other institutional investors have also added to or reduced their stakes in FAST. Integrated Wealth Concepts LLC grew its position in shares of Fastenal by 2.4% in the 1st quarter. Integrated Wealth Concepts LLC now owns 6,276 shares of the company’s stock valued at $487,000 after acquiring an additional 147 shares during the period. Tandem Investment Advisors Inc. lifted its stake in Fastenal by 1.8% in the 1st quarter. Tandem Investment Advisors Inc. now owns 12,356 shares of the company’s stock valued at $573,000 after purchasing an additional 224 shares during the last quarter. Sittner & Nelson LLC lifted its stake in Fastenal by 0.3% in the 4th quarter. Sittner & Nelson LLC now owns 68,495 shares of the company’s stock valued at $2,749,000 after purchasing an additional 226 shares during the last quarter. Founders Capital Management LLC grew its holdings in Fastenal by 2.2% during the fourth quarter. Founders Capital Management LLC now owns 10,428 shares of the company’s stock worth $418,000 after purchasing an additional 228 shares during the period. Finally, Sound Income Strategies LLC increased its position in Fastenal by 12.9% during the first quarter. Sound Income Strategies LLC now owns 2,025 shares of the company’s stock worth $94,000 after buying an additional 232 shares during the last quarter. 81.38% of the stock is currently owned by institutional investors and hedge funds.
Fastenal Stock Up 1.3% FAST stock opened at $47.64 on Tuesday. Fastenal Company has a fifty-two week low of $38.97 and a fifty-two week high of $50.63. The company has a debt-to-equity ratio of 0.01, a current ratio of 4.18 and a quick ratio of 2.21. The stock has a market capitalization of $54.67 billion, a price-to-earnings ratio of 40.37, a PEG ratio of 2.94 and a beta of 0.72. The business’s fifty day moving average price is $46.00 and its two-hundred day moving average price is $45.43.
Fastenal (NASDAQ:FAST – Get Free Report) last released its quarterly earnings results on Tuesday, July 14th. The company reported $0.33 EPS for the quarter, meeting the consensus estimate of $0.33. Fastenal had a net margin of 15.45% and a return on equity of 34.03%. The business had revenue of $2.39 billion for the quarter, compared to the consensus estimate of $2.34 billion. During the same period in the prior year, the company posted $0.29 earnings per share. Fastenal’s revenue was up 14.7% compared to the same quarter last year. On average, equities analysts anticipate that Fastenal Company will post 1.25 earnings per share for the current year.
Fastenal Increases Dividend The firm also recently announced a quarterly dividend, which will be paid on Tuesday, August 25th. Shareholders of record on Tuesday, July 28th will be given a dividend of $0.26 per share. This represents a $1.04 dividend on an annualized basis and a dividend yield of 2.2%. The ex-dividend date is Tuesday, July 28th. This is a boost from Fastenal’s previous quarterly dividend of $0.24. Fastenal’s dividend payout ratio (DPR) is currently 81.36%.
Wall Street Analysts Forecast Growth FAST has been the topic of several research analyst reports. Weiss Ratings lowered Fastenal from a “buy (b)” rating to a “buy (b-)” rating in a research note on Tuesday, July 21st. Morgan Stanley boosted their target price on Fastenal from $48.00 to $52.00 and gave the stock an “equal weight” rating in a report on Thursday, July 16th. Wolfe Research restated an “underperform” rating and issued a $47.00 price target on shares of Fastenal in a research note on Thursday, July 9th. JPMorgan Chase & Co. raised their price target on Fastenal from $46.00 to $47.00 and gave the company a “neutral” rating in a report on Thursday, April 9th. Finally, Robert W. Baird reduced their price objective on shares of Fastenal from $52.00 to $50.00 and set an “outperform” rating for the company in a research report on Tuesday, April 14th. Five equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Fastenal presently has a consensus rating of “Hold” and an average target price of $48.83.
Get Our Latest Analysis on Fastenal
Fastenal Company Profile (Free Report)
Fastenal (NASDAQ: FAST) is a wholesale distributor of industrial and construction supplies, best known for its broad assortment of fasteners such as bolts, nuts, screws and anchors. Founded in Winona, Minnesota, Fastenal has grown from a regional supplier into a national and international distributor serving a wide range of end markets, including manufacturing, construction, maintenance, repair and operations (MRO), and government customers. The company is publicly traded and operates through a network of locally staffed branches combined with national distribution capabilities.
Product offerings extend beyond fasteners to include tools, safety and personal protective equipment, power transmission components, cutting and welding supplies, janitorial and material handling items, and other industrial consumables.
Further Reading Five stocks we like better than Fastenal AirJoule’s Kubota Deal Is a Major Validation—But the Hard Part Comes Next Dividend Stocks May Be the Quiet Rotation Trade Investors Are Missing Now Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? Verizon May Be an AI Infrastructure Stock Hiding in Plain Sight Want to see what other hedge funds are holding FAST? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Fastenal Company (NASDAQ:FAST – Free Report).
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Have you assessed how the international operations of Fastenal (FAST - Free Report) performed in the quarter ended June 2026? For this maker of industrial and construction fasteners, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.
In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.
Being present in international markets serves as a counterbalance to domestic economic challenges while offering chances to engage with more rapidly evolving economies. However, this kind of diversification introduces challenges like currency fluctuations, geopolitical uncertainties and varying market trends.
Our review of FAST's last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.
For the quarter, the company's total revenue amounted to $2.39 billion, experiencing an increase of 14.7% year over year. Next, we'll explore the breakdown of FAST's international revenue to understand the importance of its overseas business operations.
Exploring FAST's International Revenue PatternsOf the total revenue, $83.4 million came from Other foreign countries during the last fiscal quarter, accounting for 3.5%. This represented a surprise of +16.14% as analysts had expected the region to contribute $71.81 million to the total revenue. In comparison, the region contributed $79.1 million, or 3.6%, and $66.1 million, or 3.2%, to total revenue in the previous and year-ago quarters, respectively.
During the quarter, Canada and Mexico contributed $333.7 million in revenue, making up 14% of the total revenue. When compared to the consensus estimate of $325.21 million, this meant a surprise of +2.61%. Looking back, Canada and Mexico contributed $306.3 million, or 13.9%, in the previous quarter, and $281.4 million, or 13.5%, in the same quarter of the previous year.
Revenue Forecasts for the International MarketsIt is projected by analysts on Wall Street that Fastenal will post revenues of $2.44 billion for the ongoing fiscal quarter, an increase of 14.3% from the year-ago quarter. The expected contributions from Other foreign countries and Canada and Mexico to this revenue are 3.1%, and 13.7%, translating into $74.55 million, and $333.11 million, respectively.
For the full year, the company is expected to generate $9.23 billion in total revenue, up 12.5% from the previous year. Revenues from Other foreign countries and Canada and Mexico are expected to constitute 3.2% ($290.86 million), and 13.8% ($1.27 billion) of the total, respectively.
Wrapping UpThe dependency of Fastenal on global markets for its revenues presents a mix of potential gains and hazards. Thus, monitoring the trends in its overseas revenues can be a key indicator for predicting the firm's future performance.
In an environment where global interconnections and geopolitical skirmishes are intensifying, Wall Street analysts keep a keen eye on these trends, particularly for firms with overseas operations, to adjust their earnings predictions. Moreover, a range of other aspects, including how a company fares in its home country, significantly affects these projections.
Here at Zacks, we put a great deal of emphasis on a company's changing earnings outlook, as empirical research has shown that's a powerful force driving a stock's near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher.
Boasting a remarkable track record that's been externally verified, the Zacks Rank, our unique stock rating system, leverages changes in earnings projections to function as a reliable gauge for predicting short-term stock price movements.
Fastenal, bearing a Zacks Rank #2 (Buy), is expected to outperform the broader market's movements in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
A Look at Fastenal's Recent Stock Price PerformanceOver the past month, the stock has seen a decline of 1.3% in its value, whereas the Zacks S&P 500 composite has posted an increase of 0.3%. The Zacks Industrial Products sector, Fastenal's industry group, has descended 3.4% over the identical span. In the past three months, there's been an increase of 0.7% in the company's stock price, against a rise of 6.6% in the S&P 500 index. The broader sector has increased by 2.1% during this interval.
