TRG | The Bottom Line – 10/23

There are interesting dots to connect from two early reports in the earnings season, Fastenal (FAST) and United Rentals (URI). Both have shown strong top line results and both are beneficiaries of the buildout of reshoring activity in the U.S. Also, both are beneficiaries of their focus on serving large companies. The combined forces of a super-sized spending wave and focused execution have brought durable benefits thus far, and we see more to come. The broader read-through is large companies are better-positioned for solid results in this buildout cycle, and we expect Q3 results and guidance to reflect this dynamic. We believe that many of TRG’s covered names will continue to benefit from this trend.

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