Why Fastenal Stock Rose 14% in May
Shares of industrial parts supplier Fastenal (NASDAQ: FAST) jumped roughly 14% in May according to data from S&P Global Market Intelligence. That easily beat the 5% or so advance of the S&P 500 index during the month. Over the first five months of the year, Fastenal's stock was up by 11% versus a 5% decline in the S&P. There was, however, a sizable COVID-19 related dip in late February and March. Yet, when you look at the numbers, the big fears investors had about Fastenal's business never really materialized.
Fastenal reports monthly sales, which is really helpful in seeing just how bad the COVID-19 headwind was for its business. The surprising thing is that the company's top-line growth has actually improved since the coronavirus started to spread. Sales increased 3.6% in January, 4.7% in February, 5% in March, and 6.7% in April. Based on these results, it looks like Fastenal actually benefited from the economic shutdowns related to COVID-19.
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Source Fool.com
