Benzinga | Aug 5, 2020 07:50AM EDT

'Trading Nation' Traders Discuss Fastenal And Honeywell

On CNBC's "Trading Nation," Mark Tepper of Strategic Wealth Partners said that Fastenal Company (NASDAQ:FAST) had a great quarter, but it's unsustainable.

The company had a huge growth by selling more safety products and that was enough to offset the decline in other segments, but the demand for such products is just a quarter-to-quarter phenomenon, believes Tepper. He thinks strength in 20% of a company can't help to offset the weakness in the other 80% for an extended period of time.

Instead of Fastenal, Tepper would buy Honeywell International Inc. (NYSE:HON). It has the best balance sheet in the sector, but it has some issues which provide us with a good entry point. The main issue for Honeywell is its aerospace segment, explained Tepper.

Todd Gordon looked at a long-term chart of Fastenal and he sees more upside for the stock. He said it's the best in breed industrial distributor and it has been raising its dividend. He would not give up on the stock yet.