Wolfe Research Reiterates Peerperform Rating on Fastenal (FAST)

Wolfe Research analyst Ryan Cooke reiterated a Peerperform rating on Fastenal (NASDAQ: FAST).

The analyst comments "Operating expenses increased +6.3% in 2Q25 and lagged the sales rate, offering ~50bps of Y/Y SG&A leverage (intensity at 24.4% of sales). This was a bit heavier than WRe at 24.1% intensity, driven entirely by growth in employee-related expenses outpacing the top-line. Netting against the better GM performance, FAST delivered 21.0% OM in 2Q25 that was +20bps ahead of WRe and +40bps ahead of Street, reflecting 30% incrementals. We expect Y/Y operating leverage to continue for the remainder of the year, as sales continue to grow at a HSD/LDD clip. The call is at 10am ET. Dial-in: (877) 407-2991. Overall, this marks a better than expected performance across the board: ADS, gross margins, free cash flow, and operating margins all came in ahead. Valuation remains a barrier for ownership with the stock near peak levels on NTM P/E, but we would still expect a positive reaction as estimates for 2H25 revise higher. Tariff and price commentary will be key on the call."

For an analyst ratings summary and ratings history on Fastenal click here. For more ratings news on Fastenal click here.

Shares of Fastenal closed at $43.27 yesterday.

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