廣告
香港股市 已收市
  • 恒指

    17,417.68
    -360.73 (-2.03%)
     
  • 國指

    6,165.04
    -141.76 (-2.25%)
     
  • 上證綜指

    2,982.31
    +5.18 (+0.17%)
     
  • 滬深300

    3,539.02
    +18.08 (+0.51%)
     
  • 美元

    7.8101
    +0.0005 (+0.01%)
     
  • 人民幣

    0.9302
    +0.0011 (+0.12%)
     
  • 道指

    40,287.53
    -377.49 (-0.93%)
     
  • 標普 500

    5,505.00
    -39.59 (-0.71%)
     
  • 納指

    17,726.94
    -144.28 (-0.81%)
     
  • 日圓

    0.0494
    -0.0000 (-0.06%)
     
  • 歐元

    8.4935
    -0.0156 (-0.18%)
     
  • 英鎊

    10.0840
    -0.0230 (-0.23%)
     
  • 紐約期油

    80.25
    -2.57 (-3.10%)
     
  • 金價

    2,402.80
    -53.60 (-2.18%)
     
  • Bitcoin

    66,762.84
    +327.86 (+0.49%)
     
  • CMC Crypto 200

    1,381.32
    +50.42 (+3.79%)
     

Fastenal's (FAST) May ADS Rises 1.5%, Improves Sequentially

Fastenal Company FAST recently released its May sales report, wherein average daily sales or ADS grew 1.5% year over year to $29.9 million, showing better growth sequentially but moderating annually. In the prior month, daily sales registered 0.7% growth, and in the year-ago period, the same registered a 5.2% increase.

The trend is worse than the historical May daily sales growth average of up 1.6% between 2018 and 2023 (excluding 2020). Net sales in May 2024 were $658.7 million, reflecting an increase of 1.5% year over year.

End-Market Perspective, Product Lines & Customers

From an end-market perspective, heavy manufacturing sales improved 1.5% for the month, and other manufacturing inched up 2.9% from a year ago. Total manufacturing (which accounted for 75.3% of May 2024 sales) registered 4.4% growth in May 2024. Non-residential construction dropped 6.2% compared with a 9.5% decrease reported in May 2023. The ADS growth rate in manufacturing and non-residential markets declined in May compared to the prior month.

Fastenal derives sales from Fasteners, Safety and other product lines. Fasteners witnessed a 4.1% decline in sales last month compared with a 0.6% decrease in the year-ago period. Safety products grew 7.5% in May 2024 compared with a rise of 6.8% a year ago. In May 2024, Other categories improved 3% compared with a 9% increase a year ago. On a sequential basis, Safety and Other categories sales improved while that of Fasteners products moderated.

Geographically, sales in the United States grew 1.6% (compared with 4% a year ago), while Canada/Mexico grew 0.3% (compared with 14% a year ago). Rest of World sales grew 4.8% against a 1.7% decline registered in the year-ago period.

In terms of customer/channel, National account daily sales growth advanced 6% in May from a year ago, given the fact that 58% of the top 100 accounts and 48.8% of public branches are expanding. Yet, non-national accounts showed a 5% decline year over year for the month. In the year-ago period, daily sales growth remained unchanged in non-national accounts year over year.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

廣告

Shares of the company have lost 1.4% year to date, better than the industry‘s 4.7% decline. With many shorter-cycle indicators remaining sluggish, it seems the anticipated recovery in the industrial sector for the second half of 2024 is being delayed. Despite tough year-ago comparisons, Fastenal’s decent large customers, its leverage in its digital strategy, onsite/offsite mix and market share gains across its product categories are expected to drive growth.

Zacks Rank and Key Picks

Fastenal currently carries a Zacks Rank #4 (Sell).

Here, we have highlighted three better-ranked stocks, namely Vital Farms VITL, Sprouts Farmers Market SFM and Tractor Supply Company TSCO.

Vital Farms offers a range of produced pasture-raised foods. It currently sports a Zacks Rank #1 (Strong Buy). VITL has a trailing four-quarter average earnings surprise of 102.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Vital Farms’ current financial-year sales and earnings suggests growth of 22.5% and 59.3%, respectively, from the year-ago reported numbers.

Sprouts Farmers, engaged in the retailing of fresh, natural and organic food products, currently sports a Zacks Rank #1. SFM has a trailing four-quarter earnings surprise of 9.2%, on average.

The Zacks Consensus Estimate for Sprouts Farmers’ current financial-year sales and earnings suggests growth of around 8% and 9.5%, respectively, from the year-ago reported numbers.

Tractor Supply Company, which operates as a rural lifestyle retailer, currently carries a Zacks Rank #2 (Buy). TSCO has a trailing four-quarter earnings surprise of 2.7%, on average.

The Zacks Consensus Estimate for Tractor Supply Company’s current financial-year sales and earnings suggests growth of around 3% and 2.5%, respectively, from the year-ago reported numbers.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Fastenal Company (FAST) : Free Stock Analysis Report

Tractor Supply Company (TSCO) : Free Stock Analysis Report

Sprouts Farmers Market, Inc. (SFM) : Free Stock Analysis Report

Vital Farms, Inc. (VITL) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research