Shareholders Of Fastenal (NASDAQ:FAST) Must Be Happy With Their 200% Total Return
NASDAQ:FAST) stock is up an impressive 161% over the last five years. It’s also good to see the share price up 23% over the last quarter. But this move may well have been assisted by the reasonably buoyant market (up 17% in 90 days).” data-reactid=”28″>The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But on the bright side, you can make far more than 100% on a really good stock. For instance, the price of Fastenal Company (NASDAQ:FAST) stock is up an impressive 161% over the last five years. It’s also good to see the share price up 23% over the last quarter. But this move may well have been assisted by the reasonably buoyant market (up 17% in 90 days).
View our latest analysis for Fastenal ” data-reactid=”29″> View our latest analysis for Fastenal
To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it’s a weighing machine. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.
Over half a decade, Fastenal managed to grow its earnings per share at 11% a year. This EPS growth is lower than the 21% average annual increase in the share price. This suggests that market participants hold the company in higher regard, these days. That’s not necessarily surprising considering the five-year track record of earnings growth.
You can see below how EPS has changed over time (discover the exact values by clicking on the image).
historic growth trends, available here..” data-reactid=”49″>We consider it positive that insiders have made significant purchases in the last year. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here..
What About Dividends?
A Different Perspective
2 warning signs we think you should be aware of.” data-reactid=”53″>It’s nice to see that Fastenal shareholders have received a total shareholder return of 62% over the last year. Of course, that includes the dividend. That gain is better than the annual TSR over five years, which is 25%. Therefore it seems like sentiment around the company has been positive lately. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Take risks, for example – Fastenal has 2 warning signs we think you should be aware of.
list of growing companies with recent insider purchasing, could be just the ticket.” data-reactid=”54″>Fastenal is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”60″>This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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