/PRNewswire/ -- Fastenal Co. (FAST:
) has been picked by Standard & Poor's Equity Research as its Focus Stock of the Week. FAST carries S&P's highest investment recommendation of 5-STARS, or Strong Buy.
"Although prospects for the U.S. economy have recently grown more uncertain, we still expect Fastenal's business to continue its recent revival," said
, Industrials Analyst at Standard & Poor's Equity Research. "We see the company being aided by the likely benefits of its decision to shift its business model in 2007 towards a smaller number of store openings per year, but with larger stores and sales staffs."
Jaffe believes Fastenal is a well managed company and thinks that this new operating strategy will enable it to leverage its store expenses as the sales base increases at individual sites. He also points to the company's very healthy balance sheet, with no long-term debt as of
March 31, 2010
, as a positive for the company. The company is scheduled to report second quarter earnings on
Tuesday, July 13
"In looking at Fastenal's longer-term prospects, we think it still has considerable room for expansion in
, where nearly all of its stores are currently located," Mr. Jaffe said. "The company was operating 2,400 sites at
May 31, 2010
and believes that
could support at least 3,500 stores. While expansion outside of
is still in its infant stage, we think it provides the company with a platform for substantial expansion in the future."
To view a video of Mr. Jaffe discussing FAST paste the following link into your browser.
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