FAST - Fastenal: Why I'm Keeping A Close Eye On This New Dividend Aristocrat

2024-05-30 16:25:42 ET

Summary

• Cyclical stocks are facing challenges due to inflation and geopolitical uncertainties.
• Fastenal's stock has dropped 16% from its recent highs, presenting a buying opportunity.
• Fastenal's unique distribution model, extensive Onsite locations, and robust e-commerce platform make it a compelling investment.

Introduction

I have good and bad news.

The bad news is that a lot of cyclical companies are currently showing stock price weakness, as it seems that the market is recognizing that cyclical growth is unlikely to rebound soon.

While we're far from a steep sell-off, industrial stocks have weakened and are now trading roughly 4% below their 52-week highs. Cyclical transportation stocks ( XTN ), for example, have sold off 15%....

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