The manufacturing and construction industries should no doubt be big beneficiaries of the rising economy. What's one of the best ways to play the industry? Fastenal (NASDAQ: FAST) is the leading distributor of fasteners and industrial supplies in the U.S. One of the big reasons I like the stock is because the company pays a modest 2.1% dividend yield, but boasts a 27% return on equity.
Sales more »
Investors in paintings and coatings company PPG Industries (NYSE: PPG) have enjoyed a nearly 45% rise over the last year, but the stock has remained in a tight $150-$160 range over the last few months. Is this a sign that it’s time to take profits on the stock? Before you rush to hit the sell trigger, you should consider the upside potential in this stock. PPG can move more »
The housing markets are showing signs of recovery. As mortgage is the lifeline of the residential construction industry, the lower interest rates have compelled the sizable middle income groups of the United States to jump into the market for new homes. The commercial construction in the country is also increasing, which has been fueled by the recovering economy.
The recovery in the construction industry is making way for some robust more »
When a company raises its dividend, it is a sign of confidence.
However, is this sign of confidence misleading, or are these companies really presenting a good opportunity?
5 Year Div. Raise
5 Year Stock Performance
2.24 more »
It’s always interesting to use earnings season as a way to formulate a view on the economy. Unfortunately, anyone looking for some positive news on the industrial sector would have been disappointed by the recent results from industrial supply companies Fastenal (NASDAQ: FAST) and MSC Industrial Direct(NYSE: MSM). What did these companies say, and what does it all mean for the industrial sector?
Mixed growth in the industrial more »
The recovery of the housing market will help companies disproportionately, because some have weathered headwinds better than others. Also, restructuring will play a key role in providing new opportunities. Let us look at the prospects of Home Depot (NYSE: HD), Lowe's (NYSE: LOW), and Fastenal (NASDAQ: FAST).
Learning from the competition
When good conditions help the economy, a mammoth company will surely benefit from it. Home Depot is a more »
With the U.S. economy showing signs of finally producing a sustainable recovery, there are opportunities to be found in some of the companies that produce items that will benefit the most from an improved economy. One area that should tremendously benefit from improving economic fundamentals is the construction industry. An improved economy means more new homes being built, more renovations of existing homes, more commercial construction projects, and more more »
Do you think nuts, bolts and screws are boring? You won't after you see how much money Fastenal (NASDAQ: FAST) makes selling them to manufacturers, plumbers, electricians and contractors.
In fact, if you think factories are going to make more widgets and builders are going to build more homes, it might be the perfect time for you to buy some shares.
A straight forward business with easy-to-understand products
There more »
There have been two major themes to the first quarter reporting season. The first is that tech spending has been weak across the board, and the second is that--outside of pockets like aerospace and automotive--the industrial sector has been weak too. Cue Autodesk’s(NASDAQ: ADSK) latest set of results. It’s a software company and its end markets are industrial. The rest is history--the company's results were disappointing more »
Looking for some “housing recovery” investment prospects? Does reasonable growth + reasonable risk + reasonable price have a place in your portfolio?
Well, that’s what I’m looking for right now. And I think I may have found three contenders worthy of further study.
Surprise, surprise! There are businesses out there that generate impressive and consistent returns on invested capital. Industrial Traders/Distributors Fastenal (NASDAQ: FAST), MSC Industrial Direct (NYSE: MSMmore »)
I would rather forget last month. After nine months of gains, I hit a nasty double digit loss. In truth, this sort of thing was inevitable and the preceding months were as much a part of the process as last month was. The previous month’s write-up and links to others can be found here. I do this stuff because I happen to believe that anyone writing about investment should more »
It’s been a fascinating –if at times confusing-earnings season for the industrials. In the good old days all an investor needed to do was look at the ISM manufacturing index and generally expect his stock to trade in the direction of its trends. Not anymore. In this disjointed recovery all industrial sectors are equal, but some are more equal than others. The question is does your stock have exposure more »
The stock market has turned volatile after hitting new highs earlier this month. It is prudent to exercise caution and be stock specific while investing in these uncertain times. I would ideally prefer to invest in a stock trading at relatively low valuations, with good earnings visibility and some potential catalysts to take it higher. I scanned through a lot of companies trading at a discount to their average historical more »
Fastenal Company's (NASDAQ: FAST)name no longer does the company justice, as the company has grown from a fastener distributor to a full-line industrial supplier. This stock should be one of the faster growing stocks over the interim. In the first quarter of 2013, Fastenal saw its gross margin expand by 70 basis points year over year to 52.6%.One of Fastenal's most innovative initiatives is its more »
Fastenal Company (NASDAQ: FAST)name is no longer does the company justice, as the company has grown from a fastener distributor to a full-line industrial supplier. This stock should be one of the fast-growing stocks over the interim. In the first quarter of 2013, Fastenal saw its gross margin expand by 70 basis points year over year to 52.6%.One of Fastenal's most innovative initiatives is its more »
Just when you thought it was safe to go back into industrial stocks, Fastenal (NASDAQ: FAST) and MSC Industrial Direct(NYSE: MSM) delivered results that raised more questions than answers. Both companies were downbeat and went to lengths to describe how their businesses weren’t performing in line with the headline manufacturing ISM numbers. So what is going on, and what is the read across from these earnings?
ISM Not more »
Is it just me or does it seem that earnings season should no longer be called a season, but rather an ongoing activity? Alcoa’s (NYSE: AA) results usually mark the beginning of the season, and as they come up next week, I guess it’s time to declare a new season open.
It’s been a good quarter for equities, but some recent weakness in the ISM data is more »
Home constructions in the US have reached to their 4-year high levels, and the monthly liquidity injections are expected to further contribute to infrastructure development. Naturally, investing in REITs comes as an obvious choice but their rising prepayment rates and narrowing spreads are straining their profitability, and encouraging them to further leverage their operations. To take advantage of the residential infrastructural development, investors should stick to general building providers, which more »
Is it just me or does it seems that earnings season should no longer be called a season but rather an ongoing activity? Alcoa’s (NYSE: AA) results usually mark the beginning of the season and, as they come up next week, I guess it’s time to declare a new season open.
It’s been a good quarter for equities but some recent weakness in the ISM data is more »
Buying the US housing recovery has been one of the most profitable trades over the last year, but what of Stanley Black & Decker (NYSE: SWK)? With 54% of its revenues coming from North America, it is obviously a play on a resumption of residential and commercial construction spending in the region, but is it that simple?
As you may have guessed by now, my rhetorical questions are leading to the more »
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