Floor & Decor is the IBD Stock Of The Day as the flooring retailer breaks above a trendline. The jump provided an early entry for FND stock Friday, amid expectations for a big earnings comeback in 2024.
Floor & Decor Stock
On the stock market today, Floor & Decor stock popped 2.4% to 97.97, rebounding from support at its 50-day moving average.
Floor & Decor shares are actionable from the 50-day bounce and trendline break. The move above the short-term high of 99.50 also provides an early entry.
FND stock shows an official 101.39 buy point from a cup-with-handle base, according to IBD MarketSmith charts.
Investors could view the handle as its own base, with 99.50 serving as the entry there.
Spending on home remodeling projects is forecast to slow mildly through the rest of the year, according to Harvard University's first quarter Leading Indicator of Remodeling Activity index.
Besides Floor & Decor, Home Depot, Lowe's, and pool company Leslie's benefit from home improvement spending — both from retailers as well as many contractors.
More broadly, the building-retail industry confronts declining home sales and macroeconomic challenges. But Floor & Decor's low prices target customers seeking value and savings in tough times, the company says.
Floor & Decor Earnings
On May 4, Floor & Decor narrowly missed earnings estimates for its first quarter but topped revenue views. Year over year, Floor & Decor earnings fell 1% to 66 cents per share. Sales increased around 9% to $1.12 billion. Comparable store sales decreased 3.3%.
For the full year, analysts expect Floor & Decor earnings per share to fall 4.3% to $2.64 in 2023 as revenue increase 9%.
They forecast a strong 25% earnings rebound in 2024 as revenue jumps 17%.
Earlier in June, the Atlanta-based company acquired Salesmaster, which it said would help it grow the commercial flooring business in the northeastern part of the country.
In Q1, Floor & Decor opened three new warehouse stores. It plans to open 32-35 warehouse stores in 2023.
Strong IBD Ratings
FND stock earns an IBD Composite Rating of 90 out of 99, according to IBD Stock Checkup.
IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use score. The best growth stocks show a Comp Rating of 90 or better.
Floor & Decor's 87 RS Rating means that it has outperformed 87% of all other stocks in IBD's database over the past year.
Year to date, FND stock is up about 41% vs. a 13% gain for the S&P 500 index.
