Latest news with #Fastenal
Yahoo
5 days ago
- Business
- Yahoo
1 Surging Industrials Stock for Long-Term Investors and 2 to Steer Clear Of
Each stock in this article is trading near its 52-week high. These elevated prices usually indicate some degree of investor confidence, business improvements, or favorable market conditions. While momentum can be a leading indicator, it has burned many investors as it doesn't always correlate with long-term success. All that said, here is one stock we think lives up to the hype and two that may correct. One-Month Return: -1% Founded in 1967, Fastenal (NASDAQ:FAST) provides industrial and construction supplies, including fasteners, tools, safety products, and many other product categories to businesses globally. Why Are We Wary of FAST? Sales trends were unexciting over the last two years as its 3.3% annual growth was below the typical industrials company Performance over the past two years shows its incremental sales were less profitable, as its 1.5% annual earnings per share growth trailed its revenue gains Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 6 percentage points Fastenal is trading at $40.80 per share, or 37.2x forward P/E. Dive into our free research report to see why there are better opportunities than FAST. One-Month Return: +6.3% Originally founded to ship beer, GATX (NYSE:GATX) provides leasing and management services for railcars and other transportation assets globally. Why Does GATX Give Us Pause? Demand for its offerings was relatively low as its number of active railcars has underwhelmed Free cash flow margin shrank by 32.2 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive 9× net-debt-to-EBITDA ratio shows it's overleveraged and increases the probability of shareholder dilution if things turn unexpectedly GATX's stock price of $156.35 implies a valuation ratio of 17.3x forward P/E. To fully understand why you should be careful with GATX, check out our full research report (it's free). One-Month Return: +20.7% Providing body cameras and tasers for first responders, AXON (NASDAQ:AXON) develops technology solutions and weapons products for military, law enforcement, and civilians. Why Will AXON Beat the Market? Unit sales averaged 32% growth over the past two years and imply healthy demand for its products Free cash flow margin expanded by 20.3 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends Historical investments are beginning to pay off as its returns on capital are growing At $750 per share, Axon trades at 127.4x forward P/E. Is now the time to initiate a position? Find out in our full research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29-05-2025
- Business
- Yahoo
Are Retail-Wholesale Stocks Lagging Fastenal (FAST) This Year?
The Retail-Wholesale group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Fastenal (FAST) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Retail-Wholesale sector should help us answer this question. Fastenal is one of 207 companies in the Retail-Wholesale group. The Retail-Wholesale group currently sits at #9 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group. The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Fastenal is currently sporting a Zacks Rank of #2 (Buy). The Zacks Consensus Estimate for FAST's full-year earnings has moved 1.2% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend. According to our latest data, FAST has moved about 15.3% on a year-to-date basis. In comparison, Retail-Wholesale companies have returned an average of 1.5%. This means that Fastenal is performing better than its sector in terms of year-to-date returns. Another Retail-Wholesale stock, which has outperformed the sector so far this year, is Tecnoglass (TGLS). The stock has returned 9% year-to-date. For Tecnoglass, the consensus EPS estimate for the current year has increased 1.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy). To break things down more, Fastenal belongs to the Building Products - Retail industry, a group that includes 5 individual companies and currently sits at #165 in the Zacks Industry Rank. Stocks in this group have gained about 2.9% so far this year, so FAST is performing better this group in terms of year-to-date returns. Tecnoglass is also part of the same industry. Investors interested in the Retail-Wholesale sector may want to keep a close eye on Fastenal and Tecnoglass as they attempt to continue their solid performance. 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 Tecnoglass Inc. (TGLS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
27-05-2025
- Business
- Yahoo
Wall Street's Biggest Stock-Split Stock of 2025 Is All Systems Go 2 Weeks From Today
Stock-split euphoria is beginning to bloom in 2025. Though Fastenal is the first brand-name company to announce and complete a forward split in 2025 -- it's Fastenal's ninth split in 37 years -- another mammoth split is on deck. A historic 15-for-1 forward split has been given the green light by shareholders to proceed after the close of trading on June 9. 10 stocks we like better than O'Reilly Automotive › Nothing has captivated the attention of investors more over the last two years than the rise of artificial intelligence (AI). The potential for this game-changing technology to add $15.7 trillion to the global economy by 2030, based on estimates from PwC, suggests a broad swath of AI-hardware and applications companies are going to benefit. But it's far from the only trend that investors have flocked to. For instance, companies completing stock splits have consistently been a bright spot for the investing community. A stock split offers a way for public companies to cosmetically alter their share price and outstanding share count by the same factor. The "cosmetic" aspect has to do with stock splits not changing a company's market cap or operating performance in any way. Splits themselves come in two forms, with investors gravitating to one far more than the other. Reverse splits, which are designed to increase a company's share price, are the less-popular of the two. Most companies undertaking reverse splits are doing so from a position of operating weakness and attempting to save their stock from delisting on a major U.S. stock exchange. In comparison, investors tend to welcome forward stock splits with open arms. This type of split is enacted to make a company's shares more nominally affordable for everyday investors who might not be able to purchase fractional shares through their broker. Public companies whose shares have soared to the point where a forward split becomes necessary are typically out-executing their peers and on the leading edge of the innovative curve within their respective industry. Last year, more than a dozen industry-leading businesses took the plunge and completed a forward split. Retail powerhouse Walmart kicked things off, with a quartet of AI kingpins following suit, including Nvidia, Broadcom, Super Micro Computer, and Lam Research. Although 2025 began a bit slower than last year, stock-split euphoria is beginning to bloom. With the first major forward stock split officially in the books, the biggest stock split of the year has been given the green light for two weeks from today. Before giving credence to what'll be the biggest stock-split stock of 2025, let's recognize the first prominent business to actually announce and complete a forward stock split this year: wholesale industrial and construction supplies giant Fastenal (NASDAQ: FAST). Fastenal is no stranger to completing forward splits. The 2-for-1 split announced on April 23 and completed after the close of trading on May 21 was its ninth stock split in the last 37 years. Inclusive of dividends paid, Fastenal stock has a total return of more than 214,000% since its August 1987 initial public offering (IPO). Though Fastenal is cyclical and benefits from periods of economic growth lasting substantially longer than recessions, it's the company's ongoing innovation that's really helped it flourish. Fastenal's managed inventory solutions have helped it learn more about the supply chain needs of its on-site clients. Over time, it's become an integral part of many key supply chains. But Fastenal isn't the only big-name company that's announced a split this year. Automated electronic brokerage firm Interactive Brokers Group (NASDAQ: IBKR) announced its intent to conduct a 4-for-1 forward split on April 15, which was more than a week before Fastenal. This marks its first split -- set to take place after the close of trading on June 17 -- since the company went public in May 2007. Interactive Brokers is a big beneficiary of optimistic investor sentiment. Despite some recent stock market gyrations, the benchmark S&P 500 is still firmly in a bull market. With the exception of the 2022 bear market, which lasted less than a year, and the COVID-19 crash, which completed in five weeks, the bulls have been in firm control for much of the last 16 years. When the benchmark index is climbing, investors tend to be willing to invest more. Narrowing things down even further demonstrates how the current bull market, which began in October 2022, has been beneficial to Interactive Brokers Group. On a trailing-two-year basis, it's witnessed its customer count, customer equity on the platform, and customer margin loans all notably increase. Although Interactive Brokers' market cap of $87 billion (as of this writing) makes it the largest public company to conduct a split in 2025, it's not the biggest stock-split stock of the year. That honor belongs to auto parts supplier O'Reilly Automotive (NASDAQ: ORLY), which is set to complete a 15-for-1 forward split after the close of trading on June 9. Two weeks from today, on June 10, O'Reilly's stock will open at its split-adjusted price, which should be below $100 per share. Whereas Fastenal and Interactive Brokers simply announced they would be splitting their respective shares, O'Reilly Automotive put its mammoth stock-split measure up for vote at its annual shareholder meeting on May 15. Based on the voting results of its shareholder meeting, this historic split has been given the green light. Since going public in April 1993, shares of O'Reilly Automotive have driven to a scorching-hot cumulative return that's approaching 58,000%! For the sake of comparison, the S&P 500 has gained around 1,260% since O'Reilly's IPO. This undeniable outperformance for Wall Street's biggest stock-split stock of 2025 boils down to three competitive advantages. O'Reilly Automotive's macro advantage is that consumers are keeping their vehicles longer than ever before. A May 2024 analysis from S&P Global Mobility found the average age of cars and light trucks on U.S. roadways hit a new all-time high of 12.6 years. This is up from an average age of 11.1 years in 2012. With interest rates rising and new vehicles becoming pricier, O'Reilly should be relied on by drivers and mechanics to keep existing vehicles in good working order. On a more company-specific level, O'Reilly's hub-and-spoke distribution model has worked wonders. The company has 31 distribution centers to go along with nearly 400 hub stores. The hub-and-spoke distribution model ensures that over 153,000 stock keeping units (SKUs) can reach local storefronts the same-day or on an overnight basis. The final puzzle piece that helps explain why O'Reilly Automotive stock has been unstoppable is the company's phenomenal share repurchase program. Taking after rival AutoZone, which has repurchased around 90% of its outstanding shares, O'Reilly has spent just shy of $26 billion to buy back more than 59% of its outstanding shares since 2011. Businesses with steady or growing net income that regularly repurchase their stock can expect a boost to earnings per share. All the right boxes are checked for O'Reilly's to continue to outperform. Before you buy stock in O'Reilly Automotive, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and O'Reilly Automotive wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor's total average return is 957% — a market-crushing outperformance compared to 167% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Interactive Brokers Group, Lam Research, Nvidia, and Walmart. The Motley Fool recommends Broadcom and recommends the following options: long January 2027 $175 calls on Interactive Brokers Group and short January 2027 $185 calls on Interactive Brokers Group. The Motley Fool has a disclosure policy. Wall Street's Biggest Stock-Split Stock of 2025 Is All Systems Go 2 Weeks From Today was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
23-05-2025
- Business
- Yahoo
Wall Street's Newest Stock-Split Stock Has Arrived -- and Its Shares Have Rocketed Higher by 214,200% Since Its IPO
Investors are gravitating to brand-name businesses conducting stock splits. Three prominent companies -- none of which is in the tech sector -- have announced historic stock splits in 2025. On May 22, the first of these game-changing stocks will begin trading at its split-adjusted price. 10 stocks we like better than Fastenal › For more than two years, artificial intelligence (AI) is the trend that's captivated the attention of Wall Street and everyday investors. The potential for AI to add $15.7 trillion to the global economy by 2030, based on estimates from PwC, has been too tempting for investors to ignore. But artificial intelligence isn't the only trend responsible for pushing the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite to numerous record-closing highs. Excitement surrounding stock splits has also played an essential role in lifting the tide on Wall Street. A stock split is a tool publicly traded companies can lean on to superficially alter their share price and outstanding share count by the same magnitude. The "superficial" aspect of stock splits pertains to them not having any impact on a company's market cap or its operating performance. Splits come in two varieties -- forward and reverse -- with the former overwhelmingly favored to the latter. Reverse splits, which are designed to increase a company's share price while simultaneously lowering its share count, are typically undertaken by struggling companies attempting to stave off delisting from a major stock exchange. In comparison, forward stock splits are almost always completed by businesses that are out-innovating and out-executing their competition. If a company has to reduce its share price to make it more nominally affordable for investors who lack access to fractional-share purchases through their broker, it must be doing something right. Forward splits are especially popular given the historic outperformance of the companies enacting them. Based on data from Bank of America Global Research, companies have averaged a 25.4% return in the 12 months following their forward split announcement since 1980. This more than doubles up the average return of the S&P 500 over the same 12-month timelines. In 2024, more than a dozen prominent businesses completed stock splits, only one of which was of the reverse variety. This includes AI juggernauts Nvidia and Broadcom, retail giant Walmart, and restaurant chain Chipotle Mexican Grill. Today, May 22, Wall Street's newest stock-split stock will take its place among the ranks. Admittedly, stock-split euphoria has gotten off to a bit of a slow start in 2025 when compared to last year. But whereas 2024 prominently featured tech stocks taking the plunge, this year has featured non-tech highfliers announcing or completing forward splits. The first brand-name business to announce a historic split in 2025 -- albeit not the company that's entering the stock-split ranks today -- is auto parts supplier O'Reilly Automotive (NASDAQ: ORLY). In mid-March, O'Reilly's board announced plans to conduct a 15-for-1 forward split, which is its largest ever, after the close of trading on June 9. This split will help lower O'Reilly's share price from almost $1,382 to close to $92 per share. O'Reilly Automotive is a company that's directly benefiting from the aging of vehicles on American roadways. A May 2024 report from S&P Global Mobility found the average age of cars and light trucks in the U.S. hit an all-time high of 12.6 years, which is up from 11.1 years in 2012. The longer drivers hold onto their vehicles, the more likely it is that O'Reilly will benefit from parts and accessory sales to mechanics and consumers. O'Reilly Automotive also has one of the most impressive share-repurchase programs on Wall Street. Since introducing its buyback program in 2011, almost $26 billion has been spent to repurchase more than 59% of the company's outstanding shares. Buyback programs of this scale can have a notably positive impact on earnings per share. The next prominent stock that made history by announcing a forward split is automated electronic brokerage firm Interactive Brokers Group (NASDAQ: IBKR). The 4-for-1 split announced on April 15, which will go into effect after trading wraps up on June 17, is the first forward split in the company's history. Interactive Brokers has thrived for years thanks to optimistic investor sentiment and lengthy bull markets. When Wall Street's major stock indexes are moving higher, it's normal for investors to put more money to work and to trade more often. Additionally, Interactive Brokers has enjoyed growth in virtually all of its key performance metrics over the last two years. Since emerging from the 2022 bear market, the number of accounts on Interactive Brokers, customer equity on the platform, margin loans outstanding, and daily average revenue trades -- total customer orders divided by the number of trading days in a period -- have all moved higher. But interestingly enough, the most recent brand-name company to announce its intent to split is the first to actually make it happen. For the ninth time in the last 37 years, wholesale industrial and construction supplies distributor Fastenal (NASDAQ: FAST) is completing a split. The company's 2-for-1 split, which was announced on April 23, became official after the close of trading on May 21, with shares opening at their split-adjusted price today, May 22. Since Fastenal's initial public offering (IPO) in August 1987, its stock has risen by 130,700% without dividend payments and 214,200% including dividends. Splitting its stock every few years has become part of the corporate culture and is indicative of a company that's firing on all cylinders. One of the key catalysts behind Fastenal's outperformance is its inextricable ties to the health of the U.S. and global economy. Even though recessions are an inevitable part of the economic cycle, the average U.S. downturn since the end of World War II has lasted only 10 months. In comparison, the typical economic expansion has endured for about five years over the last eight decades. Demand for Fastenal's products should grow in lockstep with the U.S. and global economy. Furthermore, about 73% of Fastenal's first-quarter sales came from its contract segment. "Contracts," per the company, include "national multi-site, local and regional, and government customers with significant revenue potential." In simpler terms, Fastenal's contract sales are tied to customers it has long-standing relationships with. These close-knit ties have helped push sales higher even amid plenty of macroeconomic uncertainty. Fastenal's jaw-dropping 214,200% total return since its IPO is also a reflection of the company becoming more integrated in its customers supply chains. Fastenal's managed-inventory solutions, which include internet-connected vending devices (FASTVend) and bin stock-location monitoring (FASTBin), are used to learn about clients' purchasing habits and replenishing needs. Fastenal can help improve cost efficiencies for its customers while making itself irreplaceable to cyclically driven industrial companies. At nearly 35 times forward-year earnings, Fastenal is certainly priced as a company that'll continue to outpace its peers in the growth column. While it wouldn't be a surprise to see its stock take a breather after effectively doubling since October 2022, I wouldn't bet against future gains three or more years down the line. Before you buy stock in Fastenal, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Fastenal wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $642,582!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,879!* Now, it's worth noting Stock Advisor's total average return is 975% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Bank of America is an advertising partner of Motley Fool Money. Sean Williams has positions in Bank of America. The Motley Fool has positions in and recommends Bank of America, Chipotle Mexican Grill, Interactive Brokers Group, Nvidia, and Walmart. The Motley Fool recommends Broadcom and recommends the following options: long January 2027 $175 calls on Interactive Brokers Group, short January 2027 $185 calls on Interactive Brokers Group, and short June 2025 $55 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy. Wall Street's Newest Stock-Split Stock Has Arrived -- and Its Shares Have Rocketed Higher by 214,200% Since Its IPO was originally published by The Motley Fool
Yahoo
23-05-2025
- Business
- Yahoo
1 Safe-and-Steady Stock with Exciting Potential and 2 to Turn Down
Low-volatility stocks may offer stability, but that often comes at the cost of slower growth and the upside potential of more dynamic companies. Luckily for you, StockStory helps you navigate which companies are truly worth holding. That said, here is one low-volatility stock that could offer consistent gains and two stuck in limbo. Rolling One-Year Beta: 0.64 Founded in 1967, Fastenal (NASDAQ:FAST) provides industrial and construction supplies, including fasteners, tools, safety products, and many other product categories to businesses globally. Why Are We Hesitant About FAST? Muted 3.3% annual revenue growth over the last two years shows its demand lagged behind its industrials peers Performance over the past two years shows its incremental sales were less profitable, as its 1.5% annual earnings per share growth trailed its revenue gains Free cash flow margin shrank by 6 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive At $40.68 per share, Fastenal trades at 37x forward P/E. If you're considering FAST for your portfolio, see our FREE research report to learn more. Rolling One-Year Beta: 0.70 Credited with introducing the first variable-speed pool pump, Hayward (NYSE:HAYW) makes residential and commercial pool equipment and accessories. Why Should You Dump HAYW? Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth Earnings per share have contracted by 16.8% annually over the last three years, a headwind for returns as stock prices often echo long-term EPS performance Waning returns on capital from an already weak starting point displays the inefficacy of management's past and current investment decisions Hayward's stock price of $13.74 implies a valuation ratio of 18.1x forward P/E. Check out our free in-depth research report to learn more about why HAYW doesn't pass our bar. Rolling One-Year Beta: 0.91 Having saved far more than a trillion gallons of water, Energy Recovery (NASDAQ:ERII) provides energy recovery devices to the water treatment, oil and gas, and chemical processing sectors. Why Are We Backing ERII? Market share has increased this cycle as its 15.1% annual revenue growth over the last two years was exceptional Offerings are mission-critical for businesses and lead to a best-in-class gross margin of 69.4% Share repurchases have amplified shareholder returns as its annual earnings per share growth of 71.9% exceeded its revenue gains over the last two years Energy Recovery is trading at $12.40 per share, or 15.2x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
