Floor & Decor: Beware Of The Bull Trap (Archive)
FND’s bull trap masks weakening demand, pointing to further downside risk ahead.
This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.
Elevator Pitch
- Seeking Alpha authors' sentiment has been bullish on FND despite the stock being a continuous underperformer in 2022. My research shows contrary evidence to bullish views betting on traffic growth.
- FND site visits have seen a sharp fall in Q4 FY22.
- Underlying demand drivers such as existing home sales have accelerated their decline in Q4 FY22.
- The degree of bullish beats vs consensus on revenue growth has been declining and I think there is risk of a miss for Q4 FY22.
- Technical analysis also suggests bearishness after the stock has printed a bull trap.
Read the full article here.
Disclosures and Disclaimers
Past performance ≠ future results. Not investment advice. See full Disclaimer.
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