Fastenal Earnings Are a Bellwether for How Coronavirus Will Affect Industrial Stocks
As a supplier to industrial and construction businesses, the performance of Fastenal Company (NASDAQ: FAST) can be a good way to look at the overall health of the manufacturing sector. If its business is strong, it is likely that portends positive results from its customers, as they continue to consume critical items to run their operations. Fastenal's biggest single product line is fasteners, which made up 34.2% of 2019 sales. But it also supplies general and specialty tools, safety items, and electrical, welding, and even janitorial supplies.
So its recent earnings report should be a good way to see how the effects of the ongoing COVID-19 pandemic may be beginning to influence manufacturing businesses. But digging into the details shows that a strong report from the supplier could be a deceptive signal.
Image source: Getty Images.
Source Fool.com
