Fastenal Q2: Growth Reaccelerates, But Consider Tariffs And Valuation

Jul. 14, 2025 11:51 AM ETFastenal Company (FAST) StockFAST
Caffital Research
1.66K Followers

Summary

  • Fastenal Company reported a solid growth reacceleration in Q2. The macroeconomic environment has remained subdued, making Fastenal's earnings especially strong.
  • Tariffs could pressure margins increasingly after Q2. Fastenal's pricing power should be strong, but tariffs on China are still a considerable headwind.
  • The stock is too expensive. I estimate FAST to have a 36% downside to $27.9.
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Fastenal Company (NASDAQ:FAST) reported the company’s Q2 results on the 14th of July. The industrial and construction supply distributor showed solid sales momentum amid a turbulent macroeconomic backdrop, continuing Fastenal’s strong track record of consistent earnings growth. Good growth

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I am an avid investor with a major focus on small cap companies with experience in investing in US, Canadian, and European markets. My investment philosophy to generating great returns on the stock market revolves around identifying mispriced securities by understanding the drivers behind a company's financials, and ultimately, most often revealed by a DCF model valuation. This methodology doesn't limit an investor into rigid traditional value, dividend, or growth investing, but rather accounts for all of a stock's prospects to determine the risk-to-reward.

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