Fastenal is expected to report earnings of 37 cents a share pre-market on Thursday. The stock is rated a Buy (4-Engine), according to ValuEngine, with a one-year price target at $44.04. FAST has a 12-month return of 12.4% with a five-year average annual return of 11.8%. The P/E ratio is elevated at 26 times 12-month forward earnings estimates. The daily chart shows that FAST has rising momentum and is well above its 21-day simple moving average at $39.59, but below its 50-day and 200-day simple moving averages at $42.06 and $43.91. My weekly value level is $38.53 with a semiannual pivot at $41.28 and quarterly risky level at $44.37.
Fastenal sells industrial and construction supplies in eleven product lines. Its traditional product line consists of threaded fasteners and other miscellaneous supplies. Its other product lines include tools, blades, material-handling and storage products, and other supplies.
I advocate the use of "good til canceled" limit orders to add to long positions or become less short on share-price weakness to value levels. Traders should enter GTC limit orders to reduce long positions or to add to a short position on strength to risky levels.
At the time of publication, the author had no positions or conflicts in any of the stocks mentioned.This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.