Stock Price & Analysis

Based on the analysis of Fastenal Company (FAST) stock, it is recommended to hold the stock as it has a Moderate Buy consensus among analysts with a potential 3.4% upside to the average price target of $79.00. However, the stock has shown a 2% decline over the past three months, indicating a period of consolidation.

Price Prediction for FAST Stock in 2025

FAST stock is predicted to reach $85 by the end of 2025.
This forecast is supported by the company's planned $265M-$285M investment in property and equipment, signaling growth potential.
Analysts have set an average target price of $85.25, reflecting optimism about the stock's future performance.

The S1 support level for FAST Stock is $74.95 ,The R1 resistant level for FAST Stock is $77.84.

As of the end of day on 2025-04-01, the price of FAST Stock was $77.84.

The target price for FAST Stock according to analyst rating is 78.00, with the highest price target at 82.00 and the lowest at 76.00. Analysts have a Moderate Buy rating on FAST Stock overall.

The market cap of FAST is $44.5B.

Analysis and Insights

FAST may be overvalued based on its current valuation metrics and financial performance. Here's a concise analysis:

1. High Valuation Multiples: FAST's PE ratio of 35.49 and EV/EBITDA of 24.13 are elevated compared to industry peers, suggesting potential overvaluation.

2. Moderate Revenue Growth: While revenue increased to $7.55 billion in 2024, net profit slightly declined, indicating margin compression.

3. Significant Insider Selling: 13 insiders sold $23.98 million in shares recently, possibly signaling reduced confidence in near-term appreciation.

4. Analyst Consensus: The average price target of $79 suggests only a 3.4% upside, reflecting cautious optimism.

Conclusion

FAST appears overvalued due to high multiples, insider selling, and modest analyst expectations. Investors should exercise caution.

Fastenal Company is engaged in the wholesale distribution of industrial and construction supplies. The Company is a distributor of threaded fasteners, bolts, nuts, screws, studs, and related washers, as well as miscellaneous supplies and hardware, such as pins, machinery keys, concrete anchors, metal framing systems, wire rope, struts, rivets, and related accessories. Its business tools include Fastenal Managed Inventory (FMI), Bin stock (FASTStock and FASTBin) and Industrial vending (FASTVend). It also invests in digital solutions that aim to deliver value for its customers, leverage local inventory for same-day solutions, and provide service. Its customers are in the manufacturing and non-residential construction markets. It serves general and commercial contractors in non-residential end markets as well as farmers, truckers, railroads, oil exploration companies, oil production and refinement companies, mining companies, federal, state, and local governmental entities, and others.

Based on current trends and analyst expectations, Fastenal Company (FAST) is predicted to reach $120 per share by 2030. This forecast is supported by the company's strategic growth initiatives, such as its Focus 40 program and key account sales strategy, which are expected to drive long-term expansion. Additionally, FAST's position as a "safety stock" during economic uncertainty and its ability to maintain market share in the industrial distribution sector further bolster this outlook.

FAST has a total of 20721 employees.