Fastenal Stock Bucks Thursday Selloff After Wolfe Research Upgrades, Retail Remains Bearish

Wolfe Research analysts said Fastenal is positioned well in the current environment.

Fastenal (FAST) stock garnered retail attention on Thursday after Wolfe Research upgraded the stock to ‘Peer Perform’ from ‘Underperform.’

According to The Fly, the brokerage believes Fastenal's consensus estimates "look reasonable" for its first-quarter earnings.

While the stock's multiple "gives us pause," the brokerage noted that there is not much of a reason for a near-term de-rating as the company is a "defensive play on short-cycle."

Wolfe analysts said Fastenal is positioned well in the current environment, with "a bit of a goldilocks set up as a defensive stock that has torque to ISM inflection."

Fastenal stock was roughly flat on Thursday after President Donald Trump’s tariffs on virtually all United States’ trading partners led to a broader market selloff.

Earlier in March, William Blair analysts had noted that during periods of stock market volatility and growth concerns, Fastenal typically outperforms as a "safety stock," as per The Fly.

The company is scheduled to report its first quarter earnings on April 11 before the market opens.

The industrial products maker reported a 5% rise in daily sales in February compared to the same month a year earlier.

Its sales to the heavy manufacturing market grew by 4.8%, while sales to non-residential construction slumped by 6.7%.

Retail sentiment on Stocktwits remained in the ‘bearish’ (40/100) territory while retail chatter was ‘high.’

Fastenal shares have grown 7.2% year-to-date.

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