Banking

Stock Of The Day Breaks Out As Housing Starts Rise

Floor & Decor Hldgs Cl A

Floor & Decor Hldgs Cl A

FND


$3.73


3.4%


Stock Of The Day Breaks Out As Housing Starts Rise51%

IBD Stock Analysis

  • Floor & Decor stock shot above a 109.95 buy point.
  • Shares broke out from an earlier consolidation but that failed.
  • The relative strength line has been sideways but is above the handle’s high.
Stock Of The Day Breaks Out As Housing Starts Rise

Industry Group Ranking

Stock Of The Day Breaks Out As Housing Starts Rise

Emerging Pattern

Stock Of The Day Breaks Out As Housing Starts Rise

Cup with Handle

* Not real-time data. All data shown was captured at
1:56PM EDT on
07/21/2021.

Specialty flooring provider Floor & Decor (FND) is the IBD Stock Of The Day. FND stock is breaking out of a buy point as new home starts remain strong.




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Demand for homes away from urban centers or for larger dwellings with more amenities for working from home continues to fuel new construction.

There were 1.6 million new home starts in June, up 6.3% from May and higher than analysts’ forecasts, according to data out this week from the Census Bureau.

The construction figures are good news for Atlanta-based Floor & Decor. The company operates 150 retail locations across the U.S., providing everything from tile flooring to marble backsplashes.

But the industry has been hit with increasing raw material prices in recent months. Lumber prices are down from earlier highs but remain elevated.

FND Stock

Shares climbed 3.4% to close at 113.37 on the stock market today, clearing a cup-with-handle base with a 109.95 buy point. The buy zone tops out at 115.45. FND stock broke out of a prior consolidation in April but that failed a month later.

The relative strength line, which tracks performance vs. the S&P 500 index, is largely moving sideways, but is above the handle’s high.

Meanwhile, FND stock has a C+ Accumulation/Distribution Rating, which shows slightly more buying than selling by institutional investors over the last 13 weeks.

It has a 97  Composite Rating out of 99 and a best-possible EPS Rating of 99. The Composite Rating compiles scores on key fundamental and technical metrics: earnings and sales growth, profit margins, return on equity, and relative price performance. Investors should focus on stocks with a Composite Rating of 90 or higher.

It has a perfect 99 EPS Rating. It will report second-quarter results after the market closes on Aug. 5. Analysts polled by FactSet see earnings soaring 370% to 61 cents per share with sales jumping 81% to $836 million.

Floor & Decor is the top-ranked stock in IBD’s Retail/Wholesale-Buildings Products group. Other top ranked stocks in the group include Titan Machinery (TITN) and Beacon Roofing Supply (BECN).

Home Depot (HD) is another building supply and home improvement company that is making gains and sits above its 50-day line. Shares rose 0.3% Wednesday.

Follow Gillian Rich on Twitter for investing news and more.

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