Barron's Says Takes A Serious Look At Fastenal (FAST)

Barron's published a bullish piece on Fastenal (Nasdaq: FAST). Barron's likes that Fastenal has a debt-free balance sheet, growing dividend and a smart/disciplined management team.

Fastenal is now trading at 17 times forward earnings which may be a entry point for a stock that historically has moved ahead of the broader economy. Investors who buy Fastenal, which is close to its 52-week low, will get a company with a clean balance sheet, 26% ROE, and also a growing dividend.

Fastenal's competition is very fragmented, and Fastenal can likely benefit from its size and geographic diversity while smaller peers struggle. Chief Financial Officer Daniel Florness told Barrons, "We are very aggressive in trying new things. Our conservative financial model has given us the freedom to exert ourselves in the marketplace as we see fit; our innovativeness and creativity in this environment today is not limited by someone's willingness to lend us money [as it is for other companies]."

Also, Barron's thinks Fastenal will benefit from Obama's stimulus bill because its products are so essential to nearly every kind of industrial and construction project.

Fastenal is trading down 0.83% today to $30.94