Fastenal Co. (FAST) Slid on Soft US Industrial Manufacturing

1 day ago 3

Soumya Eswaran

Fri, January 16, 2026 astatine 8:42 AM CST 3 min read

Fenimore Asset Management, an concern absorption company, released its Q4 2025 capitalist letter. A transcript of the aforesaid tin beryllium downloaded here. The banal marketplace was coagulated successful 2025 but volatile. While investors balanced AI enthusiasm, economical uncertainty, and monetary argumentation concerns. The summertime rally was driven by AI-related spending and economical resiliency, whereas the 4th fourth saw a much volatile marketplace owed to valuation pressures and macro uncertainty. Stocks from the large-cap exertion and connection services sectors led the marketplace successful the quarter, with the S&P 500 Index rising 2.66%. The steadfast believes that the inclination of AI stocks outpacing high-quality stocks is unsustainable. In Q4 2025, Fenimore Small Cap Strategy returned -4.12%, trailing its benchmark, the Russell 2000 Index’s 2.19% return. The underweight vulnerability to low-quality stocks drove the underperformance successful the quarter. Fenimore Dividend Focus Strategy declined -4.41% successful Q4 compared to the Russell Midcap Index’s 0.16% return. Furthermore, Fenimore Value Strategy declined -1.17% successful Q4 compared to the Russell Midcap Index’s 0.16% return. Investments successful the fiscal and concern sectors led to the comparative underperformance of the Strategy successful the quarter. The steadfast expects mixed marketplace conditions successful 2026 arsenic galore AI-related stocks look costly portion high-quality companies are trading astatine multi-year lows, creating opportunities. In addition, delight cheque the fund’s apical 5 holdings to cognize its champion picks successful 2025.

In its fourth-quarter 2025 capitalist letter, Fenimore Asset Management highlighted stocks specified arsenic Fastenal Company (NASDAQ:FAST). Fastenal Company (NASDAQ:FAST) was among the cardinal show detractors successful Fenimore Value Strategy during the quarter. Fastenal Company (NASDAQ:FAST) is simply a wholesale distributor of concern and operation supplies. On January 15, 2026, Fastenal Company (NASDAQ:FAST) banal closed astatine $43.53 per share. One-month instrumentality of Fastenal Company (NASDAQ:FAST) was 2.79%, and its shares gained 14.43% of their worth implicit the past 52 weeks. Fastenal Company (NASDAQ:FAST) has a marketplace capitalization of $49.97 billion.

Fenimore Asset Management stated the pursuing regarding Fastenal Company (NASDAQ:FAST) successful its 4th fourth 2025 capitalist letter:

"Our underperformance versus the Russell Midcap was attributable to our prime of investments successful the fiscal and concern sectors. Our allocation to those sectors was a nett neutral. Brown & Brown (BRO) and Fastenal Company (NASDAQ:FAST) weighed astir heavy connected our comparative performance. FAST’s main resistance connected show was the weakness successful U.S. concern manufacturing. Major concern customers made sizeable accumulation cuts successful December which led to a income decline. Gross borderline compression occurred arsenic income shifted toward lower-margin services. Additionally, FAST carried higher inventory costs to hedge against incoming tariff hikes."