Business

Dividend Diamond in Focus Fastenal Company (NASDAQ:FAST)

If investors are looking for a stable dividend stock with upside, Fastenal Company (NASDAQ:FAST) could be one that fits the bill.  The stock currently provides a dividend yield of 2.79% for the Services company.  Sell-side analysts covering the shares are projecting that it will reach $56.92 within the next 12-18 months.  This is a solid upside to a recent tick of $57.30.  On a consensus basis, analysts have a Buy/Sell rating of 2.60, which is based on a 1 to 5 scale where 1 represents a Strong Buy and 5 a Strong Sell. Many individuals may have a tough time trying to figure out what actually drives financial markets. There are plenty of investing strategies and trading systems that individuals can use when trying to navigate the stock market. Sudden stock market moves can be mysterious, especially if the move goes against what professionals are expecting. When traders are just starting out, major market shifts can have the ability to wreak havoc if they are unprepared. Nobody wants to be on the losing end of a trade, but the reality is that it can happen at any time. Being prepared for the unknown isn’t easy, but it may be a good way to help ease the burden when markets get choppy.

Let’s take a look at how the stock has been performing recently.  Over the past twelve months, Fastenal Company (NASDAQ:FAST)’s stock was 4.77%.  Over the last week of the month, it was -3.00%, -2.90% over the last quarter, and  8.24% for the past six months.

Over the past 50 days, Fastenal Company stock’s -5.21% off of the high and 19.35% removed from the low.  Their 52-Week High and Low are noted here.  -6.28% (High), 20.96%, (Low). 

FUNDAMENTAL ANALYSIS

Fundamental analysis examines the financial elements of a company, for example; sales, cash flow, profit and balance sheet.  These numbers are then crunched to create theoretical valuations of companies. 

Earnings Per Share (EPS) is the earnings made by a company divided by their number of shares.  EPS enables the earnings of a company to easily be compared to their competitors. The higher the number, the more profit per dollar is being made on investor capital.  Fastenal Company’s EPS for the trailing 12 months is 2.49.  Their EPS should be compared to other companies in the Services sector.

Price-to-Earnings Ratio is the current share price divided by annual earnings per share.  P/E provides a number that details how many years of earnings it will take a stock to recoup the value of one share at current price levels.  Easy to calculate and understand, P/E is an extremely common ratio that is used to compare valuations of stocks against each other relatively.  Fastenal Company’s  P/E ratio is 23.06. 

Projected Earnings Growth (PEG) is a forward looking ratio based on anticipated earnings growth.  PEG is created by dividing P/E by the projected rate of earnings growth.  Fastenal Company’s  PEG is 1.21.

TECHNICAL ANALYSIS

Technical analysts have little regard for the value of a company. They use historic price data to observe stock price patterns to predict the direction of that price going forward.  Analysts use common formulas and ratios to accomplish this.

Fastenal Company (NASDAQ:FAST)’s RSI (Relative Strength Index) is 52.79.  RSI is a technical indicator of price momentum, comparing the size of recent gains to the size of recent losses and establishes oversold and overbought positions.

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