Here's Why Floor & Decor Stock Plunged 16.5% in June
Shares of home-improvement retailer Floor & Decor Holdings (NYSE: FND) fell 16.5% in June, according to data provided by S&P Global Market Intelligence. Not only was this a large monthly decline but it was also worse than the 8% decline of the S&P 500. And it seems that fears over the state of the housing market have something to do with the stock's underperformance.
According to The Fly, MKM Partners analyst David Bellinger and Goldman Sachs analyst Kate McShane both gave Floor & Decor stock a neutral rating in the month of June, with price targets of $65 per share and $64 per share, respectively. That's basically where the stock trades right now, indicating neither analyst expects much from this company in 2022.
Consider that Floor & Decor has performed very well since the start of the COVID-19 pandemic. The company's annual net sales growth was 18.6% and 41.5% for 2020 and 2021, respectively. And this red-hot sales growth coincided with a strong U.S. housing market. According to the S&P CoreLogic Case-Shiller US National Home Price Index, home values increased 10.4% in 2020 and 18.8% in 2021.
Source Fool.com
