Rectangle Pattern Suggests a Significant Move in Floor & Decor Holdings (FND) Soon

A rectangle pattern has formed in the chart of Floor & Decor Holdings Inc. (FND).  Depending on which way the stock emerges from this pattern, FND could see a breakout or a breakdown…

Floor & Decor Holdings Inc. (FND) operates as a specialty retailer in the hard surface flooring market. Its stores offer a range of tile, wood, laminate, and natural stone flooring products, as well as decorative and installation accessories at everyday low prices.

The company thrived during the pandemic even though its business is built around in-store shopping. Its sales were up 31% year over year in its most recent quarter. This growth is attributed to its large and loyal professional customer base. Management plans to increase its store count by 20% per year until it hits 400 locations.

FND had $271 million in cash as of the end of the latest quarter, compared with only $3 million in short-term debt. The company has a current ratio of 1.6 and a return on equity of 18.6%.

The stock has seen its revenue grow 9% over the past year and earnings rise 13.9%. Sales are expected to grow 22.6% this year. FND had a strong 12 months price-wise which has resulted in a trailing P/E of 63.15.

The stock’s performance over the past month has been mixed though, leading to a Momentum Grade of C in our POWR Ratings system.

Take a look at the 1-year chart of FND below with added notations…

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