Returns Breakdown
0.16
Return On Tangible Assets
0.16
Return On Assets
0.2
Return On Equity
| Return On Tangible Assets | 0.16 | |
| Return On Capital Employed | 0.4 | |
| Return On Assets | 0.16 | |
| Return On Equity | 0.2 |
Is Fastenal (USA Stocks:FAST) outlook positive for May 2025?
 | By Rifka Kats | Macroaxis Story |
With Fastenal's EPS estimate for next year at 2.37 and a short ratio of 3.86, the stock presents a compelling opportunity for investors seeking growth in the industrial distribution sector. Despite a recent price change of 0.68 loss, the company's strategic positioning could offer substantial upside potential.
Important Takeaways
Fastenal currently holds a performance score of 3 out of 100. With a Beta of 0.8, the stock is less volatile than the overall market, suggesting it could provide diversification benefits in a portfolio. When the market rises, Fastenal's returns are likely to increase, but at a slower pace. Conversely, in a downturn, its losses are expected to be smaller. The stock currently carries a risk level of 1.8%. To make informed decisions, verify Fastenal's value at risk and examine the connection between its skewness and day median price to determine if it will adhere to its established price patterns.Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Gabriel Shpitalnik
In the realm of strategic investments, patience often yields the sweetest rewards. Fastenal Company, a key player in the industrial distribution sector, presents a compelling case for investors seeking steady growth. With an EPS estimate of 2.37 for next year, the company demonstrates a promising earnings trajectory. Despite a PEG ratio of 3.41, which suggests a premium valuation, the stock's current trading price around $75.43 aligns closely with Wall Street's target of $75.11, indicating a stable outlook. While the analyst consensus leans towards a hold, the stock's resilience, underscored by a 52-week low of $60.35, suggests potential for upward momentum. As the market continues to evolve, Fastenal's strategic positioning within the industrials category could make it a valuable addition to a diversified portfolio. Currently, Fastenal's net income per share remains steady compared to last year. By 2025, the Sales, General, and Administrative expenses as a percentage of revenue are expected to rise to 36%, while Days Sales Outstanding might decrease to 38.4 days. This analysis aims to clarify our stance for private investors contemplating shorting Fastenal. Despite these projections, there are reasons why private investors might still find value in holding a stake in the company.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Fastenal. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.
Predictive Modules for Fastenal
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Fastenal's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
How important is Fastenal's Liquidity
Fastenal financial leverage refers to using borrowed capital as a funding source to finance Fastenal Company ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Fastenal financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Fastenal's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Fastenal's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Fastenal's total debt and its cash.
Another Deeper Perspective
Fastenal Company has relatively low volatility with skewness of 0.86 and kurtosis of 4.16. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Fastenal's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Fastenal's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
As the saying goes, "Don't put all your eggs in one basket," and Fastenal Company might just be the right addition to diversify your portfolio. With a current ratio of 3.98X, Fastenal demonstrates a strong ability to cover its short-term liabilities, indicating financial stability. The company's impressive market capitalization of $43.83 billion and a PE ratio of 38.09 suggest robust investor confidence and potential for growth. Despite a slight dip from its 52-week high of $84.39, the stock's typical price of $75.43 offers a strategic entry point for investors seeking long-term gains. With a payout ratio of 0.80, Fastenal provides a reliable dividend yield, making it an attractive choice for income-focused investors..
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This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of Fastenal Company. Please refer to our Terms of Use for any information regarding our disclosure principles.