When the economy slows, particularly the manufacturing sector, there isn't much Fastenal (FAST)
can do about it. By the same token, when "disappointing" results mean
that growth drops into the high single digits, you're still talking
about a very strong company. The issue with Fastenal has never been
about the strength of its growth, but rather the price investors pay for
that growth. Nothing has really changed in that respect - while other
MRO distributors like MSC Industrial (MSM) and DXP Enterprises (DXPE)
may have claims to GARP ("growth at a reasonable price") status,
Fastenal pretty much looks like a GAAP ("growth at ANY price") type of
stock today.
Read the full article at Seeking Alpha:
Will Manufacturing Lead The Economy - And Fastenal - Again?
No comments:
Post a Comment