With a market cap of $39.3 billion, Fastenal Company (FAST), based in Winona, Minnesota, is a leading national distributor of industrial and construction supplies, operating primarily through company-owned stores in North America.

Companies valued at $10 billion or more are generally considered "large-cap" stocks, and Fastenal fits this criterion perfectly, signifying its substantial size, stability, and influence in the industrial sector.

Fastenal is trading 12.4% below its 52-week high of $79.04, which it hit on Mar. 21. FAST stock has gained 9.4% over the past three months, outperforming the Industrial Select Sector SPDR Fund (XLI) 5.1% rise over the same time frame.

In the longer term, FAST has returned 26.8% over the past 52 weeks. In comparison, the XLI gained 21.4% over the past year.

To confirm the bullish price trend, FAST has been trading above its 50-day and 200-day moving average recently, even with some fluctuations over the past year.

FAST stock has surged nearly 8% in the subsequent trading session after it unveiled its Q2 earnings report on July 12. The company topped its EPS and revenue targets, and it is eyeing stronger sales for the second half of 2024 and into 2025, thanks to a solid push in customer acquisition. Despite a tough economic backdrop - highlighted by a sub-50 ISM Index - Fastenal has maintained a robust balance sheet and solid operating cash flow.

Rival MSC Industrial Direct Co., Inc. (MSM) has underperformed FAST. MSM stock has declined 19.1% in the past 52 weeks.

Despite its outperformance relative to XLI, analysts are cautious about FAST’s prospects. The stock has a consensus rating of "Hold" from 13 analysts in coverage. Although the stock currently trades above the mean price target of $67.40, the Street-high target price of $80 implies the stock could rally as much as 15.6%.

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On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.