Floor & Dcor (FND) shares soared 8% in the last trading session to close at $72.74. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 7.1% gain over the past four weeks.
Floor & Decor stock is expected to have moved higher, driven by ongoing store expansion, supply chain enhancements and growth initiatives that support customer demand and market share gains. Investor sentiment also improved amid optimism around improving housing affordability in the United States, following a recent meeting of U.S. Commerce Secretary Howard Lutnick with homebuilding executives, which highlighted the Trump administration’s efforts to address affordability concerns through incentive offerings.
This company is expected to post quarterly earnings of $0.35 per share in its upcoming report, which represents a year-over-year change of -10.3%. Revenues are expected to be $1.14 billion, up 2.7% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Floor & Dcor, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on FND going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Floor & Dcor is part of the Zacks Retail - Home Furnishings industry. Lowe's (LOW), another stock in the same industry, closed the last trading session 4.3% higher at $267.21. LOW has returned 3.3% in the past month.
For Lowe's, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.95. This represents a change of +1% from what the company reported a year ago. Lowe's currently has a Zacks Rank of #3 (Hold).
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Floor & Decor Holdings, Inc. (FND): Free Stock Analysis Report Lowe's Companies, Inc. (LOW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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