Strong Performance Today In Materials & Construction From Fastenal Company (FAST)

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Fastenal Company ( FAST) pushed the Materials & Construction industry higher today making it today's featured materials & construction winner. The industry as a whole closed the day down 0.4%. By the end of trading, Fastenal Company rose 59 cents (1.2%) to $50.88 on average volume. Throughout the day, 1.9 million shares of Fastenal Company exchanged hands as compared to its average daily volume of 1.6 million shares. The stock ranged in a price between $49.76-$51.07 after having opened the day at $50.11 as compared to the previous trading day's close of $50.29. Other companies within the Materials & Construction industry that increased today were: Vertex Energy ( VTNR), up 14.7%, Matrix Service Company ( MTRX), up 9.9%, PGT ( PGTI), up 5.3%, and Jewett-Cameron Trading Company ( JCTCF), up 4.1%.
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Fastenal Company, together with its subsidiaries, operates as a wholesaler and retailer of industrial and construction supplies in the United States, Canada, and internationally. The company offers fasteners and other industrial and construction supplies under the Fastenal name. Fastenal Company has a market cap of $14.59 billion and is part of the industrial goods sector. The company has a P/E ratio of 34.6, above the S&P 500 P/E ratio of 17.7. Shares are up 7.8% year to date as of the close of trading on Monday. Currently there are two analysts that rate Fastenal Company a buy, one analyst rates it a sell, and seven rate it a hold.

TheStreet Ratings rates Fastenal Company as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the negative front, China Advanced Construction Materials Group ( CADC), down 11.4%, Skyline Corporation ( SKY), down 7.8%, Perma-Fix Environmental Services ( PESI), down 5.9%, and Tri-Tech ( TRIT), down 5.8%, were all laggards within the materials & construction industry with PulteGroup ( PHM) being today's materials & construction industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the materials & construction industry could consider SPDR S&P Homebuilders ETF ( XHB) while those bearish on the materials & construction industry could consider ProShares Short Basic Materials Fd ( SBM).

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