Is Fastenal Company a Good Investment Choice?
StockNews
Published Aug 26, 2021 08:43AM ET
Updated Aug 26, 2021 09:30AM ET
Is Fastenal Company a Good Investment Choice?
Wholesale industrial and construction materials distributor Fastenal (FAST) witnessed a substantial improvement in demand in the second quarter of 2021. However, given that the company’s top- and bottom-line performance continue to be negatively affected by rising inflationary pressure, is the stock worth betting on now? Read on.Fastenal Company (NASDAQ:FAST) is involved in the wholesale distribution of non-residential construction and industrial supplies in the United States, Canada, Mexico, and worldwide. Stronger demand from manufacturing and non-residential construction markets, thanks to an increase in economic activity in the second quarter, helped improve the company’s operational results in its last reported quarter. Its shares have soared 12.8% in price year-to-date and 4.3% over the past three months. FAST is based in Winona, Minn.
Although FAST’s growing digital footprint, which represented 41.7% of its sales in the second quarter, and improved demand from onsite customers bode well for the stock, its valuation at its current share price level could be concerning.
In addition, while President Biden's bipartisan infrastructure deal could boost FAST’s construction parts and equipment-related sales, growing inflationary pressure and a reduction in its national account sales and government customers could hamper its growth.
Continue reading on StockNews
Get The News You Want
Written By: StockNews
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.