Fastenal is Yahoo Finance Plus’ investment idea of the day

Yahoo Finance’s Jared Blikre reports details on Yahoo Finance’s Investment idea of the day.

Video transcript

ALEXIS CHRISTOFOROUS: All right, and finally, we have got the Yahoo Finance Plus Investment Idea of the Day, a bullish call on Fastenal. I know they're out with their third quarter results. And I guess the Street likes what they're hearing.

JARED BLIKRE: That's right. This is from Argus Research. And let's check out the YFi Interactive here. I'm going to pull up a chart. And this is going to be over the last two years. You can see Fastenal up about 48% over that time period. And over the last year or so, just really in a pretty steady uptrend. And I believe Argus has a price target of, yes, $60. And that would be right up here, so perhaps at the upper end of this trend channel.

And I'll just give you some of their reasoning. In their investment report, they're saying that reasonable price-- the subject line is, there is a reasonable price for a consistent grower. Fastenal shares have traded in line with the market over the past quarter, with a flat performance. The company recently reported third quarter EPS rising 10% from the prior year and matching consensus forecast.

Fastenal generates lots of cash, and the balance sheet is strong. Management has signaled confidence in its long-term outlook with a series of dividend increases and a special dividend over the past two years. But once again, checking out the year-to-date performance here, we're seeing it up about 10.7%, Alexis.