Do Fastenal's Earnings Suggest Recession Fears Are Overblown?
The third-quarter earnings of industrial supply company Fastenal (NASDAQ: FAST) led to a double-digit increase in the share price on the day of their release (Friday 11th Oct) and raised the hopes of investors in the industrial sector. But was the jubilation justified? The numbers suggests there is reason for some cautious optimism, but it might not be from the area that many expected it.
Companies like Fastenal and MSC Industrial (NYSE: MSM) tend to set the tone for the industrial sector because they have extremely short sales cycles. In other words, as soon as manufacturing companies see a slowdown, the first thing they will do is cut back on buying supplies from Fastenal.
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Source Fool.com
