|SoTM Bull's Eye Report - Today's Most Compelling Buy |
Wednesday, March 20, 2013
At StateoftheMarkets.com, we strive to "own the best and ignore the rest" in our equity portfolios. Toward this end, each day we search our database for a "top stock" (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical "set up" and a good entry point.
In short, when our equity team is looking to add a stock to one of our portfolios, the "bull's eye" stock shown below is generally their first choice.
|Fastenal Co||FAST|| Trading Companies & Distributors || 7.0 || +6.21% || $49.77|
Why We Like The Stock:
Fastenal Co (FAST) is our most compelling buy today due to the fact that it is a top rated stock (in terms of earnings strength and company/industry performance) that has recently signaled "Heavy Insider Buying." An Insider Buying signal is very positive for a stock as that indicates that management is buying its own stock. Usually, this is for good reason, such as positive outlook on future business, an upcoming news announcement, etc. So, when we see a stock signal a "Heavy Insider Buying" signal, we take a good look at it. It helps that FAST is in a hot sub-industry and features a positive technical set-up. Along with its competitors W.W. Grainger Inc (GWW), United Rentals Inc (URI), MSC Industrial Direct Co (MSM), and WESCO Intl (WCC), FAST has been trending higher this year. Since mid-December, the stock has kept above its 50-day moving average, which is a sign of a healthy uptrend. Currently, FAST has pulled back off of its recent February highs around $53, making for a good entry point. The stock also just crossed above its 5- and 10-day moving averages, which is bullish in the short-term. We like FAST at current prices due to its nice technical set-up and Heavy Insider Buying signal.
|We Would Be Buyers: |
At the current price (~$51.00), or on a pullback to the 50-day moving average ($50.08).
Looking to trade the Bull's Eye stock picks? Click here to download our free Special Report, "How We Identify Our “Bull’s Eye” Picks & How You Can Profit Trading Them"
|Company Profile: |
Fastenal Company is engaged in selling industrial and construction supplies in a wholesale and retail fashion. The industrial and construction supplies are grouped into eleven product lines. The Company distributes the supplies through a network of approximately 2,600 company owned stores. Most of its customers are in the manufacturing and non-residential construction markets. The manufacturing market includes both original equipment manufacturers (OEM) and maintenance and repair operations (MRO). The non-residential construction market includes general, electrical, plumbing, sheet metal, and road contractors. Other users of its product include farmers, truckers, railroads, mining companies, federal, state, and local governmental entities, schools, and certain retail trades. Geographically, its stores and customers are primarily located in North America. As of December 31, 2011, the Company had 2,585 store locations.
The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 - 10 with 10 being the highest.
At the time of publication the editor and affiliated companies own the following positions: FAST
Note: Positions may be bought or sold while this publication is in circulation without notice.
Fastenal Co - Last 3 Months
Fastenal Co - Last 12 Months
Fastenal Co - Last 5 Years
The analysis and information in this report and on our website is for informational purposes only. No part of the material presented in this report or on our websites is intended as an investment recommendation or investment advice. Neither the information nor any opinion expressed nor any Portfolio constitutes a solicitation to purchase or sell securities or any investment program. The opinions and forecasts expressed are those of the editors of StateoftheMarkets.com and may not actually come to pass. The opinions and viewpoints regarding the future of the markets should not be construed as recommendations of any specific security nor specific investment advice. Stocks should always consult an investment professional before making any investment.
Any investment decisions must in all cases be made by the reader or by his or her investment adviser. Do NOT ever purchase any security without doing sufficient research. There is no guarantee that the investment objectives outlined will actually come to pass. All opinions expressed herein are subject to change without notice. Neither the editor, employees, nor any of their affiliates shall have any liability for any loss sustained by anyone who has relied on the information provided.
The analysis provided is based on both technical and fundamental research and is provided 'as is' without warranty of any kind, either expressed or implied. Although the information contained is derived from sources which are believed to be reliable, they cannot be guaranteed.
The information contained in our websites and StateoftheMarkets.com publications is provided by Ridge Publishing Co. Inc. (Ridge). One of the principals of Ridge, Mr. David Moenning, is also President and majority shareholder of Heritage Capital Management, Inc. (HCM) a Chicago-based money management firm. HCM is registered as an investment adviser. HCM also serves as a sub-advisor to other investment advisory firms. Ridge is a publisher and has not registered as an investment adviser. Neither HCM nor Ridge is registered as a broker-dealer.
Employees and affiliates of HCM and Ridge may at times have positions in the securities referred to and may make purchases or sales of these securities while publications are in circulation. Editors will indicate whether they or HCM has a position in stocks or other securities mentioned in any publication. The disclosures will be accurate as of the time of publication and may change thereafter without notice.
Index returns are price only and do not include the reinvestment of dividends. The S&P 500 is a stock market index containing the stocks of 500 large-cap corporations, most of which are US companies. The index is the most notable of the many indices owned and maintained by Standard & Poor's, a division of McGraw-Hill. S&P 500 is used in reference not only to the index but also to the 500 companies that have their common stock included in the index.
Investments in equities carry an inherent element of risk including the potential for significant loss of principal. Past performance is not an indication of future results.