Shares of Fastenal Co. (NASDAQ:FAST), a leading distributor of industrial supplies, rose after reporting improving sales trends to start the year. We view the sequential strengthening of the company’s sales as evidence of some abating headwinds its business, notably in its energy-related end-markets. In addition, Fastenal displayed encouraging sales traction, and evidence of ongoing market share gains, in its manufacturing and construction end-markets. Based on several of its internal growth initiatives, including the installation of vending machines at certain customers’ worksites and the placement of full-time Fastenal employees at other customers’ sites, we believe the company is poised to generate accelerating earnings growth during the next several years.
From Baron Asset Funds' first quarter 2016 commentary.
