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Investing.com - Wolfe Research has reduced its price target on Floor & Decor Holdings, Inc. (NYSE:FND) to $58.00 from $76.00 while maintaining an Underperform rating on the stock.
The research firm bases its year-end 2026 target price on a 25x next-twelve-months multiple applied to its 2027 earnings per share estimate of $2.31, which sits below the consensus estimate of $2.63. Despite the bearish outlook, InvestingPro data shows the company remains profitable with a diluted EPS of $1.94 over the last twelve months, though analysts forecast a slight decline to $1.82 for fiscal year 2025.
Wolfe Research notes that Floor & Decor’s valuation has recently de-rated and now trades at 31.3x compared to Home Depot at 23.8x, Lowe’s at 18.4x, and Tractor Supply at 23.6x on a next-twelve-months price-to-earnings basis.
The firm believes Floor & Decor’s multiple should further de-rate as unit growth targets become more at risk, though it should still trade ahead of Home Depot given more near-term growth opportunities.
Floor & Decor’s current valuation is roughly in line with its five-year average, placing it at approximately the 50th percentile, while relative to the S&P 500, it trades at a 37% premium versus its five-year average of a 103% premium.
In other recent news, Floor & Decor Holdings, Inc. reported its third-quarter 2025 earnings, revealing a diluted earnings per share (EPS) of $0.53. This result surpassed analysts’ expectations, which had forecasted an EPS of $0.45. Despite the earnings beat, the company experienced a decline in comparable store sales by 1.2% year-over-year, which fell short of analyst projections. Additionally, Goldman Sachs adjusted its outlook on Floor & Decor, raising the stock price target to $80 from $70, while maintaining a Sell rating. These developments highlight a complex picture for investors, with strong earnings performance but challenges in sales growth.
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