This profile displays how we build return forecasts and aggregate “opinions” for Fastenal, our 4th most widely-followed company by Manifest Investing subscribers. For most portfolios (because most buy/hold/sell decisions should be influenced by impact on total portfolio) would perceive Fastenal as a “solid hold” under the present conditions and set of assumptions. Start your FREE TEST DRIVE at http://www.manifestinvesting.com today.
There’s a reason that Fastenal (FAST) is the 4th most widely-followed stock by our community of investors. And as the time series graphic that we refer to as a “Chronicle” suggests — we noted some accumulation back when the stock price approached $35 and the long-term return forecast neared 15%. In case you’re wondering, “Yes, we liked Fastenal a lot nine months ago.” See: This Week at MANIFEST (9/25/2015) [Test drive or subscription required]
The accompanying banner (above) provides a parade of long-term and short-term opinions on FAST, sort of like a panel of Olympic judges. No, Virginia, the judges do not always agree and there’s usually a Simon Cowell in the mix.
- MANIFEST PAR: PAR stands for Projected Annual Return, our 5-year time horizon total return (annualized price appreciation and average dividend yield) forecast. At 9.6%, it’s fairly solid, should be considered by most to be a “strong hold” and provides context. The average stock checks in at about 6.4% right now — so Fastenal is slightly better than average.
- Quality Ranking: Scored index based on financial strength, earnings stability/consistency, relative growth and relative profitability versus competitors/peers. All companies are scored and ranked. Fastenal ranks in the top quintile (>80) and we consider the top quintile to be EXCELLENT.
- MANIFEST Ranking: We believe that return forecast and quality are the two most important characteristics of any investment. This “score” or index is an equally rated percentile ranking of both factors. At 92, we believe that 8% of the companies in our coverage universe (approximately 190 companies) are more compelling right now than Fastenal.
- Value Line (VL) Low Total Return Forecast (VLLTR): Based on the 3-5 year forecast published by the Value Line Investment Survey (9% at the time of publication for Fastenal), the figure shown here (7.4%) is adjusted for change in stock price and time horizon. The median VLLTR for the Value Line 1700 Standard Edition is currently 5.6%.
- Morningstar P/FV: The price-to-fair value, based on analysis by Morningstar. A fairly valued stock = 100%. A P/FV less than 100% is potentially “on sale.” The average Morningstar P/FV right now is 99%.
- S&P P/FV: The P/FV, based on analysis by Standard & Poor’s. The average S&P P/FV is 100%. S&P is the “least impressed” of our “Olympic judges” when it comes to Fastenal, at the present.
- 1-Yr ACE Outlook: The first of our one year horizon forecasts — used for an indication of “real sentiment.” ACE stands for Analyst Consensus Estimate. This 1-year total return forecast is based on an aggregate of covering analysts for the various companies. The average 1-Yr ACE forecast is currently 14.3%.
- 1-Yr S&P Outlook: The one year total return forecast from S&P. The average S&P 1-year forecast is currently 7.0%.
- 1-Yr GS Outlook: GS = Goldman Sachs, singled out as one of the most influential opinions (and sentiment drivers) in the world of investing. The average Goldman Sachs 1-year total return forecast is currently 7.3%. I’m surprised that Goldman does not cover Fastenal, hence the blank entry.
Business Model Analysis: 9-12% Return Forecast