Fastenal Co (FAST): Vertical Integration and Predictable Growth in a Defined Uptrend
Fastenal (FAST) isn’t just an industrial supplier—it’s become a deeply integrated logistics partner to thousands of businesses, and the numbers show that the model is working.
Over the last few years, Fastenal has quietly built one of the densest distribution networks in the industry. Its core differentiator is the “Fastenal Managed Inventory” (FMI) system, which goes beyond typical supply to offer real-time, tech-driven inventory management through nearly 132,000 installed devices—up 10.8% year-over-year. In Q2 2025, FMI accounted for 44.1% of total sales, a steady climb from 41.8% in Q2 2024 and 39.8% in Q2 2023. That kind of consistent growth reflects how sticky these customer relationships have become.
This strategy is translating directly into results. In the most recent earnings report (released Monday), Fastenal beat expectations on both the top and bottom line. Sales rose 8.6% year-over-year, operating margin improved to 21.0% (up from 20.2% last year), and EPS jumped 12.7%. The stock rallied 4% on the report and remains within 5% of all-time highs.
While some companies are scrambling to offset tariff pressure, Fastenal has a playbook. It’s already made three pricing changes this year and has a phased plan in place to lift prices by 140–170 basis points depending on how trade policy plays out. The CFO summed it up: Fastenal historically gains share during periods of disruption—and they expect to do it again.
Technically, FAST is in a well-defined uptrend. It’s trading 8% above its 50-day moving average and 15% above its 200-day. Even a slight pullback would likely be viewed as a buying opportunity—historically, dip-buyers have consistently stepped in near the 50-week trendline.
We’d consider scaling into a position rather than chasing strength all at once, with a mental stop around the 50-week MA ($38 and change). This stock has been on our radar since April, and with a model that’s built on recurring customer engagement and pricing power, we think it still has room to run.
