Core Insights - Fastenal Company, based in Winona, Minnesota, specializes in the wholesale distribution of industrial and construction supplies, with a market cap of approximately $46.9 billion [1] Performance Overview - Fastenal's stock has underperformed compared to the broader market, gaining 13.6% year-to-date but dropping 1.7% over the past 52 weeks, while the S&P 500 Index gained 14.4% in 2025 and 12.7% over the past year [2] - The company also lagged behind the Industrial Select Sector SPDR Fund, which surged 16.4% in 2025 and gained 9.1% over the past year [3] Recent Financial Results - Following the release of mixed Q3 results on October 13, Fastenal's stock price fell 7.5% in one trading session. The company's Q3 topline increased by 11.7% year-over-year to $2.1 billion, but missed expectations by 11 basis points. Adjusted EPS rose 12.3% year-over-year to $0.29, missing consensus estimates by 3.3% [4] Future Earnings Expectations - For the full fiscal year 2025, analysts project an adjusted EPS of $1.11, reflecting an 11% year-over-year increase. Fastenal has a mixed earnings surprise history, missing bottom-line estimates twice in the past four quarters while meeting projections on two occasions [5] Analyst Ratings and Price Targets - Among 17 analysts covering Fastenal, the consensus rating is a "Hold," consisting of four "Strong Buys," 12 "Holds," and one "Strong Sell" [5] - Barclays analyst Guy Hardwick maintained an "Equal-Weight" rating on Fastenal but reduced the price target from $49 to $45. The mean price target of $45.82 indicates a 12.2% premium to current price levels, while the highest target of $50 suggests a 22.4% upside potential [7]

Core Viewpoint - Fastenal Company demonstrated resilience in a challenging industry environment, reporting growth in earnings and maintaining strong financial health despite a decline in construction activity. Financial Performance - Fastenal reported an earnings per share (EPS) of $0.29, slightly below the estimated $0.297 and the Zacks Consensus Estimate of $0.30, but an improvement from the previous year's EPS of $0.26 [2] - The actual revenue for the quarter was approximately $2.13 billion, aligning with estimates, showcasing the company's ability to increase sales despite industry challenges [3] Financial Health - The company has a strong current ratio of approximately 4.22, indicating good short-term financial stability [4] - Fastenal's debt-to-equity ratio is about 0.14, suggesting a relatively low level of debt compared to equity, which is favorable for long-term sustainability [4] Valuation Metrics - Fastenal's price-to-earnings (P/E) ratio is approximately 35.38, and the price-to-sales ratio is about 5.40 [5] - The enterprise value to sales ratio is roughly 5.43, while the enterprise value to operating cash flow ratio is around 47.16 [5] - The earnings yield for the company is approximately 2.83%, reflecting its profitability relative to its share price [5]

Core Viewpoint - Fastenal Co. experienced a decline in share price by approximately 4 percent in pre-market trading due to third-quarter profit falling short of market expectations despite an increase in net sales [1] Financial Performance - Net income for the third quarter increased by 12.6 percent to $335.5 million compared to $298.1 million in the previous year [2] - Earnings per share rose to $0.29, reflecting a 12.3 percent increase from $0.26 a year ago, although Wall Street analysts had anticipated earnings of $0.30 per share [2] - Operating income as a percentage of net sales improved to 20.7 percent from 20.3 percent in the same quarter of the previous year [2] Sales Growth - The company's net sales for the quarter grew by 11.7 percent to $2.133 billion, up from $1.910 billion last year, aligning with market expectations of $2.13 billion [3] - Daily sales increased by 11.7 percent to $33.3 million from $29.8 million in the previous year [4] Dividends and Future Outlook - The Board declared a dividend of $0.22 payable in the fourth quarter, with plans to return over $1 billion in dividends to shareholders in 2025 [4] - The company expressed confidence in its ability to generate strong cash flow moving forward [4]

Core Insights - Fastenal Company, based in Winona, Minnesota, is a major player in the wholesale distribution of industrial and construction supplies, with a market capitalization of approximately $54.6 billion [1] Earnings Expectations - Fastenal is expected to release its third-quarter results on October 13, with analysts predicting an adjusted EPS of $0.30, reflecting a 15.4% increase from $0.26 in the same quarter last year [2] - For the full fiscal year 2025, analysts forecast an EPS of $1.11, an 11% increase from $1 in 2024, and a further growth to $1.23 in fiscal 2026, representing a 10.8% year-over-year increase [3] Stock Performance - Fastenal's stock has increased by 35.3% over the past 52 weeks, outperforming the S&P 500 Index's 15.4% gains and the Industrial Select Sector SPDR Fund's 12.9% returns during the same period [4] - Following the release of better-than-expected Q2 results, Fastenal's stock gained 4.2%, with Q2 topline revenue rising 8.6% year-over-year to $2.1 billion, exceeding expectations by 88 basis points [5] Analyst Ratings - The consensus rating for Fastenal is "Hold," with 16 analysts covering the stock, including four "Strong Buys," 11 "Holds," and one "Strong Sell" [6] - The stock is currently trading slightly above its mean price target of $46.40 [6]

Core Insights - Mairs & Power Balanced Fund experienced a challenging start to Q2 2025 due to tariff uncertainties, Middle East conflicts, rising national debt, and a poor dollar performance, but managed to recover and rise 25% by the end of the quarter [1] - The fund returned 2.66% in the first half of 2025, underperforming against benchmark indexes which rose 5.43% and the Morningstar Moderate Allocation peer group which increased by 5.67% [1] Company Performance - Fastenal Company (NASDAQ:FAST) reported a one-month return of -4.40% but saw a significant 35.74% increase in value over the last 52 weeks, closing at $47.99 per share with a market capitalization of $55.075 billion on September 23, 2025 [2] - The fund's overweight position in the Industrials sector contributed positively in the first half of 2025, but poor stock selection led to an overall negative impact [3] - Toro (TTC), another significant holding, reported slowing revenue growth and lowered guidance, negatively affecting its stock price, while Fastenal's growth indicated market share gains despite similar market weaknesses [3] Hedge Fund Interest - Fastenal Company (NASDAQ:FAST) was held by 42 hedge fund portfolios at the end of Q2 2025, an increase from 39 in the previous quarter, indicating growing interest among institutional investors [4]

Core Insights - The excitement surrounding forward stock splits in high-profile companies has significantly contributed to the S&P 500's performance in 2025, alongside the trend of artificial intelligence [1][2] Group 1: Stock Split Dynamics - A stock split allows companies to adjust their share price and outstanding share count without affecting market capitalization or operating performance [2] - Investors typically favor companies that announce forward splits, as these are perceived to make shares more affordable for retail investors [4] - Companies completing forward splits often demonstrate superior innovation and execution compared to their competitors [4] Group 2: Company Performances - O'Reilly Automotive has seen a 36% year-to-date increase, driven by a 15-for-1 forward split and strong demand for auto parts due to the aging vehicle population [5][6][7] - Fastenal's shares are up 32% year-to-date, benefiting from its corporate culture of frequent stock splits and strong ties to contract sales, which account for over 73% of its net revenue [11][14] - Interactive Brokers Group has outperformed with a 44% year-to-date increase, supported by a favorable stock market environment and significant investments in technology that enhance customer offerings [17][18][19][20]

Company Overview - Fastenal Company, based in Winona, Minnesota, specializes in the wholesale distribution of industrial and construction supplies both in North America and internationally [1] - The company has a market capitalization of approximately $55 billion, categorizing it as a large-cap stock, which reflects its substantial size and influence in the industrial distribution sector [2] Stock Performance - Fastenal's stock reached an all-time high of $50.63 on August 25 and is currently trading 5.3% below that peak [3] - Over the past three months, FAST stock has increased by 12.3%, outperforming the Industrial Select Sector SPDR Fund's (XLI) 5% increase during the same period [3] - Year-to-date, FAST stock has surged 33.4%, and over the past 52 weeks, it has risen by 39.7%, significantly outpacing XLI's gains of 14.9% and 18.2%, respectively [4] Financial Results - Following the release of better-than-expected Q2 results on July 14, Fastenal's stock prices gained 4.2% [5] - The company's revenue for the quarter increased by 8.6% year-over-year to $2.1 billion, exceeding market expectations by 88 basis points [5] - Fastenal's earnings per share (EPS) for the quarter rose by 12.7% year-over-year to $0.29, surpassing consensus estimates by 3.6% [5] Competitive Position - Fastenal has outperformed its peer W.W. Grainger, Inc. (GWW), which experienced a 5.7% decline year-to-date and a 1.7% increase over the past 52 weeks [6] - Among 16 analysts covering FAST stock, the consensus rating is a "Hold," with the stock trading slightly above the mean price target of $46.40 [6]

Core Viewpoint - Fastenal, O'Reilly Automotive, and Interactive Brokers have all announced stock splits this year, prompting a comparison of their financial metrics, growth prospects, and valuations to determine the best investment choice among them [2][14]. Financials - O'Reilly Automotive generated revenue of $16.87 billion over the last 12 months, significantly higher than Fastenal's $7.61 billion and Interactive Brokers' $5.4 billion [4]. - In terms of net profit margin, Fastenal leads slightly with 15.1%, followed by Interactive Brokers at 14.7% and O'Reilly at 14.1% [5]. - Interactive Brokers has the strongest balance sheet, with a cash position of nearly $89.7 billion compared to its debt of $17.15 billion, while both Fastenal and O'Reilly have larger debt loads than their cash reserves [6]. Growth - Interactive Brokers experienced a revenue increase of 18.6% year over year in Q1 2025, with earnings rising by 21.7% [7]. - Fastenal's net sales grew by 3.4% year over year, with earnings up only 0.3%, while O'Reilly reported a revenue growth of 4% but a decline in earnings by 1.6% [8]. - Analysts project O'Reilly to deliver the highest earnings growth next year at 12.5%, compared to Fastenal's 9.8% and Interactive Brokers' 7.3% [9]. Valuation - Interactive Brokers has the lowest trailing 12-month price-to-earnings ratio and forward P/E multiple [10]. - O'Reilly has a lower price-to-earnings-to-growth (PEG) ratio than Fastenal, indicating a more attractive valuation based on future earnings growth projections [11]. Dividends - Fastenal is the dividend winner with a forward dividend yield of 2.13% and has increased its dividend for 27 consecutive years [12]. - Interactive Brokers has a forward dividend yield of 0.63% and has only increased its dividend for two years, while O'Reilly does not currently offer a dividend [12]. Best Stock-Split Stock - The best choice among these stocks depends on the investor's style; Fastenal is recommended for income investors, while O'Reilly is viewed as the most attractively valued for growth investors [13][14].