Winona, Minnesota-based Fastenal Company (FAST) engages in the wholesale distribution of industrial and construction supplies. Valued at $42.3 billion by market cap, the company offers fasteners, cutting tools, metal working, lifting, hardware, plumbing, lubricant, and other related products. FAST serves weld-to-length bandsaw blades, custom sling fabrication, inspection, custom packaging, calibration, tool repairing, and custom logo program worldwide.
Shares of this largest fastener distributor have underperformed the broader market over the past year. FAST has gained 6.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 20.7%. However, in 2025, FAST stock is up 3.4%, surpassing the SPX’s 3.2% rise on a YTD basis.
Narrowing the focus, FAST’s underperformance looks less pronounced compared to the Industrial Select Sector SPDR Fund (XLI). The exchange-traded fund has gained about 18.5% over the past year. Moreover, the ETF’s 5.2% gains on a YTD basis outshine the stock’s returns over the same time frame.
FAST faced challenges, including a soft manufacturing environment and weakened demand for fasteners. Its industrial production remained weak, with key customers implementing cuts due to holiday shutdowns. Moreover, uncertainties like fluctuating industrial activity and cost pressures continue to be potential challenges for the company.
On Jan. 17, FAST shares closed up more than 1% after reporting its Q4 results. Its EPS of $0.46 fell short of Wall Street expectations of $0.48. The company’s revenue was $1.82 billion, failing to meet Wall Street forecasts of $1.84 billion.
For fiscal 2025, ending in December, analysts expect FAST’s EPS to grow 7.5% to $2.15 on a diluted basis. The company’s earnings surprise history is mixed. It beat or matched the consensus estimate in two of the last four quarters while missing the forecast on two other occasions.
Among the 15 analysts covering FAST stock, the consensus is a “Hold.” That’s based on two “Strong Buy” ratings, 11 “Holds,” and two “Strong Sells.”
This configuration is less bullish than three months ago, with three analysts suggesting a “Strong Buy.”
On Jan. 22, Morgan Stanley (MS) analyst Christopher Snyder maintained a “Hold” rating on FAST with a price target of $76, implying a potential upside of 2.2% from current levels.
The mean price target of $78.75 represents a 5.9% premium to FAST’s current price levels. The Street-high price target of $88 suggests an upside potential of 18.4%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.More news from Barchart
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