Why Fastenal Stock Jumped 16% in April
Shares of industrial parts supplier Fastenal Company (NASDAQ: FAST) rose 16% in April according to data from S&P Global Market Intelligence, edging slightly ahead of the 13% or so gain of the S&P 500 index. The stock started to move steadily ahead of the broader market following its earnings release on April 14, but the relatively good news in that report shouldn't have been a surprise.
Fastenal provided monthly sales updates throughout the first quarter. Each month saw a top-line increase in the low-to-mid single digits. However, the big change came in March, when the company broke out its safety equipment sales. Fasteners, the industrial firm's namesake product line, saw a 10% drop in daily sales in March while safety came in with a 31% increase ("other" was down 2.5%). All in, the overall results were still positive, showing the inherent benefits of diversification.
Image source: Getty Images.
Source Fool.com
