Fastenal Stock Story

FAST -  USA Stock  

USD 60.13  0.47  0.79%

It appears Fastenal will continue to recover much faster as its share price surged up 3.06% today. This firm current daily volatility is 1.07 percent, with a beta of -0.02 and an alpha of 0.03 over DOW. As many millenniums are trying to avoid retail, it makes sense to review Fastenal Company a little further and try to understand its current market patterns. We will analyze why it could be a much better year for Fastenal shareholders.
Published over a month ago
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Should you short Fastenal Company after the newest volatility drop?
Fastenal Company currently holds roughly 321.8 M in cash with 1.06 B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.56.
Our advice module provides unbiased investment recommendation that can be used to complement current average analyst sentiment on Fastenal Company. Our advice engine provides an advice for the firm potential to grow from the perspective of an investor's risk tolerance and investing horizon.
Investing in Fastenal, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Fastenal along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Fastenal's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Fastenal in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Fastenal. Your research has to be compared to or analyzed against Fastenal's peers to derive any actionable benefits. When done correctly, Fastenal's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Fastenal.

How important is Fastenal's Liquidity

Fastenal financial leverage refers to using borrowed capital as a funding source to finance Fastenal Company ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Fastenal financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Fastenal's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Fastenal, but it might be worth checking our own buy vs. sell analysis

Fastenal Correlation with Peers

Investors in Fastenal can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Fastenal Company. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Fastenal and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Fastenal is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of Fastenal for more details

Another Deeper Perspective

We consider Fastenal very steady. Fastenal secures Sharpe Ratio (or Efficiency) of 0.0292, which denotes the company had 0.0292% of return per unit of risk over the last 3 months. Our standpoint towards predicting the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. We have found twenty-seven technical indicators for Fastenal Company, which you can use to evaluate the future volatility of the firm. Please confirm Fastenal Coefficient Of Variation of 2333.43, mean deviation of 0.7203, and Downside Deviation of 0.9553 to check if the risk estimate we provide is consistent with the expected return of 0.0311%.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Will Fastenal newest gain continue?

Coefficient of variation is down to 2333.43. It may call for a possible volatility drop. Fastenal Company has low volatility with Treynor Ratio of -1.57, Maximum Drawdown of 5.73 and kurtosis of 1.58. However, we advice all investors to further analyze Fastenal Company to make certain all market information is desiminated and is consistent with the current expectations about Fastenal upside potential. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Fastenal's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Fastenal's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Final Perspective on Fastenal

Whereas some other companies under the industrial distribution industry are still a bit expensive, Fastenal may offer a potential longer-term growth to private investors. With a relatively neutral outlook on the newest economy, it is better to hold off any trading of Fastenal as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Fastenal.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Fastenal Company. Please refer to our Terms of Use for any information regarding our disclosure principles.

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