5 Best Industrial Distribution Stocks to Invest In According to Hedge Funds

3. Fastenal Co. (NASDAQ:FAST)

Fastenal Co. (NASDAQ:FAST) is one of the 10 best industrial distribution stocks to invest in according to hedge funds. Recent analyst ratings appear to inspire a lot of confidence in the company’s prospects for the foreseeable future.

On June 4, Jefferies maintained its Buy rating and a $52 target price on Fastenal Co. (NASDAQ:FAST). As per the firm’s estimates, the stock yields double-digit upside above 11% at the prevailing level.

Jefferies emphasized that the market expects net sales to rise by 11.7% in the second quarter. Based on the numbers gathered from April and May, the company needs to achieve about 6% daily sales growth in June to meet those expectations. Additionally, the firm has noted that short-cycle green shoots are consistently widening across the industry.

On June 3, Guy Hardwick from Barclays updated his estimates for Fastenal Co. (NASDAQ:FAST) ahead of the company’s May sales release. The analyst kept an Equal Weight rating on the stock, while adjusting its target price upward from $45 to $46.

Hardwick’s adjustment to the target price is underpinned by Barclays modeling a strong daily sales expansion for Fastenal, forecasting a 14.4% year-over-year daily sales growth rate for the month of May.

Fastenal Co. (NASDAQ:FAST) engages in the wholesale distribution of industrial and construction supplies. It offers fasteners like nuts, studs, and bolts and related industrial and construction supplies. It also sells miscellaneous supplies and hardware such as wire ropes, rivets, and strut products. The company serves the manufacturing market, including original equipment manufacturers.

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