FAST AI Stock Analysis – Buy, Hold, or Avoid?
Fastenal Company (FAST)
Fundamentals
Fastenal Company (FAST) demonstrates solid financial health with consistent revenue and earnings growth driven by its market-leading position in the industrial distribution sector. The company maintains stable and improving profitability metrics, supported by efficient cost management and robust operating margins, while recent earnings results slightly exceeded expectations. Despite a premium valuation reflective of strong fundamentals, growth sustainability and industry-specific risks warrant cautious optimism.
Financial Highlights
- Revenue
- Net Income
- Net Margin (%)
Revenue
14.74% YoY
Q2 2026
Net Income
15.89% YoY
Q2 2026
Net Margin
Q2 2026
Growth Metrics
Revenue Growth YoY
Latest Quarter: Q2 2026
Net Income Growth YoY
Latest Quarter: Q2 2026
Revenue Per Share Growth YoY
Latest Quarter: Q2 2026
EPS Growth YoY
Latest Quarter: Q2 2026
Book Value Per Share Growth YoY
Latest Quarter: Q2 2026
| Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 2.4B | 2.2B | 2.0B | 2.1B | 2.1B | 2.0B | 1.8B | 1.9B |
| Revenue Growth YoY | +14.74% | +12.37% | +11.12% | +11.68% | +8.56% | +3.39% | +3.75% | +3.48% |
| Net Income | 382.8M | 339.8M | 294.1M | 335.5M | 330.3M | 298.7M | 262.1M | 298.1M |
| Net Income Growth YoY | +15.89% | +13.76% | +12.21% | +12.55% | +12.85% | +0.34% | -1.61% | +0.88% |
| EPS | $0.33 | $0.30 | $0.26 | $0.29 | $0.29 | $0.26 | $0.23 | $0.26 |
| EPS Growth YoY | +13.79% | +15.38% | +13.04% | +11.54% | +11.54% | 0.00% | 0.00% | 0.00% |
Profitability Metrics
Technical Analysis
FAST is currently in a consolidation phase with price action basing near its recent highs. The stock shows a strong bullish trend technically with price above key moving averages and a golden cross, but momentum and ADX readings suggest a lack of strong trend conviction currently, indicating possible range-bound activity.
No extreme reading
Price in uptrend
Range-bound market
50 above 200 - bullish
Key Technical Values
Price with Moving Averages
50-day, 150-day and 200-day simple moving averages
Relative Strength Index
Momentum oscillator measuring speed and magnitude of price changes
RSI (14)
Earnings
Fastenal Company (FAST) demonstrates solid financial health with consistent revenue and earnings growth driven by its market-leading position in the industrial distribution sector. The company maintains stable and improving profitability metrics, supported by efficient cost management and robust operating margins, while recent earnings results slightly exceeded expectations. Despite a premium valuation reflective of strong fundamentals, growth sustainability and industry-specific risks warrant cautious optimism.
Latest Earnings
Q2 2026 Earnings (Jun 30, 2026)
Earnings Per Share (EPS)
Actual
$0.33
Estimated
$0.33
Surprise
+$0.00
Surprise %
+0.43%
Revenue
Actual
$2.39B
Estimated
$2.34B
Surprise
+$48.81M
Surprise %
+2.09%
Historical Earnings
| Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | |
|---|---|---|---|---|---|---|---|---|
| Earnings Per Share | ||||||||
| EPS (Actual) | $0.33 | $0.30 | $0.26 | $0.29 | $0.29 | $0.26 | $0.23 | $0.26 |
| EPS (Estimated) | $0.33 | $0.30 | $0.26 | $0.30 | $0.28 | $0.26 | $0.48 | $0.51 |
| EPS Surprise | +$0.00 | +$0.00 | +$0.00 | -$0.01 | +$0.01 | +$0.00 | -$0.25 | -$0.25 |
| % Diff | +0.4% | +0.4% | +0.3% | -2.4% | +2.7% | +0.0% | -52.1% | -49.3% |
| Revenue | ||||||||
| Revenue (Actual) | $2.39B | $2.2B | $2.03B | $2.13B | $2.08B | $1.96B | $1.82B | $1.91B |
| Revenue (Estimated) | $2.34B | $2.2B | $2.04B | $2.13B | $2.07B | $1.95B | $1.84B | $1.9B |
| Revenue Surprise | +$48.81M | +$5.21M | -$10.82M | +$1.8M | +$5.94M | +$8.56M | -$17.52M | +$7.06M |
| % Diff | +2.1% | +0.2% | -0.5% | +0.1% | +0.3% | +0.4% | -1.0% | +0.4% |
Valuation
Fastenal Company exhibits robust financial health with consistent revenue and earnings growth, supported by strong margins and solid cash flow generation. However, its valuation multiples are notably elevated compared to sector peers, reflecting market expectations for sustained growth and operational efficiency. Analyst consensus is predominantly neutral to slightly bullish, indicating moderate upside potential around current levels.
Valuation Metrics
Price to Earnings
TTM
Price to Sales
TTM
Price to Book
TTM
Enterprise Value to EBITDA
TTM
Enterprise Value to Revenue
TTM
| Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | |
|---|---|---|---|---|---|---|---|---|
| Price to Earnings | 36.39 | 38.67 | 38.59 | 42.28 | 36.21 | 37.29 | 39.09 | 34.34 |
| Price to Sales | 23.09 | 24.20 | 22.72 | 26.39 | 23.21 | 22.70 | 22.59 | 21.43 |
| Price to Book | 13.55 | 13.35 | 11.68 | 14.45 | 12.68 | 12.05 | 11.40 | 11.38 |
| Enterprise Value to EBITDA | 110.31 | 108.54 | 107.52 | 116.01 | 100.43 | 101.81 | 106.18 | 94.92 |
| Enterprise Value to Revenue | 23.19 | 24.26 | 22.80 | 26.50 | 23.36 | 22.84 | 22.72 | 21.56 |
Sentiment & Analyst Ratings
Fastenal (FAST) displays a cautiously optimistic market sentiment driven by consistent double-digit sales growth and strategic investments into technology and infrastructure. Despite solid operational performance and positive analyst revenue forecasts, the stock has faced some price pressure recently, leading to a neutral to mixed investor perception.
Analyst Recommendations
Risk Assessment
Fastenal Company displays a strong financial foundation with robust liquidity and low leverage, supporting its operational resilience despite margin pressures from inflation and tariffs. While recent earnings growth and digital expansion signal positive momentum, investors should remain cautious due to competitive pressures and economic uncertainties that could affect profitability. Overall, the risk profile reflects a moderate risk typical for industrial distribution with some sector-specific challenges.
Liquidity & Solvency
Frequently Asked Questions about FAST
AI Answers: Common Questions About FAST
Get AI-powered answers to the questions investors ask most about Fastenal Company
FAST trades at $47.71 with a P/E of 40.43, reflecting premium valuation but backed by consistent 5-10% revenue growth and 10-15% EPS growth. Long-term investors may find it attractive, but short-term buyers should wait for technical confirmation.
There is no strong sell signal currently; however, investors concerned about valuation risk or margin pressures might consider trimming positions if the stock breaks below key support near $46.00 or if earnings guidance weakens.
Key risks include margin pressure from inflation and tariffs, economic downturns impacting industrial demand, and competitive threats from e-commerce platforms. Supply chain disruptions could also affect performance.
Resistance is near the 52-week high of $50.63, with support around $46.16 (50 SMA). A breakout above $48.00 could signal further upside, while a drop below $44.25 (200 SMA) would indicate downside risk.
FAST is overvalued relative to sector peers, trading at roughly two to three times higher multiples including P/E and EV/EBITDA. This premium reflects market confidence in growth but limits margin for error.
The company shows strong fundamentals with stable gross margins (~44-45%), improving operating margins (~20-21%), and high earnings quality. Revenue and EPS growth are consistent and organic, supported by operational efficiency.
Technically, FAST is in consolidation with price above key moving averages and a golden cross, but momentum indicators like ADX and RSI suggest weak trend strength. Investors should watch for a breakout above $48.00 or a breakdown below $46.00.
Potential catalysts include continued expansion of vending and inventory solutions, geographic growth, and technological investments that could drive operational efficiencies and revenue gains.
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