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Investment Thesis
Flooring & Decoration (NYSE:FND) is a hard-surface flooring retailer and distributor of commercial flooring with 191 warehouse-format stores and six small design studios in 33 states. With an experienced management team, the company lays out expansion plans to drive future store base growth by 20% per year. This gave FND the runway to grow into the next home improvement retail giant.
FND has also performed well financially over the last few years. Earnings per share rose 64%, and EPS jumped 83% from 2019 to 2021. However, FND is down more than 50% from its all-time high in December 2021 and has had a disappointing performance in 2022 due to the depressed housing market. This allows investors to buy these amazing growth companies at a significant discount in my opinion. So, I rate FND a “Strong Buy”.