Fastenal Co. - Momentum
January 04 2012 - 7:00PM
Zacks
Fastenal Co. (FAST) has cranked out some very big gains over
the last few months, recently hitting a new all-time high after
jumping more than 50% since September. With a high industry rank
and bullish growth projection, this Zacks #1 Rank stock is on the
fast track with momentum.
Company Description
Fastenal Co operates as a wholesaler and retailer
of industrial and construction supplies in North America. The
company was founded in 1967 and has a market cap of $13.1
billion.
Although FAST found a short-term bottom in early
August, shares got an extra boost on October 13 after the company
reported strong Q3 results that included sharp gains from last
year.
Third-Quarter Results
Sales for the period were up 20% from last year to
$727 million. Income jumped 29% from last year to 33 cents,
directly in line with the Zacks Consensus Estimate.
The company noted that it continues to pursuit an
aggressive growth strategy, opening 94 new stores during the first
9 months of the year for a total store count of 2,584.
Financial Profile
Moving forward, Fastenal will continue to benefit
from its strong financial profile, with cash and short-term
investments of $137 million against no long-term debt.
Estimates
We've seen some very slight movement in estimates
over the last month, with the current-year estimate up one penny to
$1.21. The next-year estimate is also up a penny over the last
month, climbing to $1.39, a bullish 15% growth projection.
Valuation
With a PEG ratio of 2.07, FAST trades at a premium
to the benchmark of 1 for value.
12-Month Chart
On the chart, shares are up more than 50% in the
last four months, recently hitting a new all-time high. Take a look
below.
![](http://www.zacks.com/images/upload_dir/1325708070.jpg)
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