Over the past six months, Floor And Decor’s stock price fell to $62.53. Shareholders have lost 18.5% of their capital, which is disappointing considering the S&P 500 has climbed by 12.9%. This may have investors wondering how to approach the situation.

Is now the time to buy Floor And Decor, or should you be careful about including it in your portfolio? Check out our in-depth research report to see what our analysts have to say, it’s free for active Edge members.

Why Do We Think Floor And Decor Will Underperform?

Even with the cheaper entry price, we're swiping left on Floor And Decor for now. Here are three reasons why FND doesn't excite us and a stock we'd rather own.

1. Shrinking Same-Store Sales Indicate Waning Demand

Same-store sales show the change in sales for a retailer's e-commerce platform and brick-and-mortar shops that have existed for at least a year. This is a key performance indicator because it measures organic growth.

Floor And Decor’s demand has been shrinking over the last two years as its same-store sales have averaged 5% annual declines.

2. EPS Trending Down

Analyzing the change in earnings per share (EPS) shows whether a company's incremental sales were profitable – for example, revenue could be inflated through excessive spending on advertising and promotions.

Sadly for Floor And Decor, its EPS declined by 8.3% annually over the last three years while its revenue grew by 4.1%. This tells us the company became less profitable on a per-share basis as it expanded.

3. Previous Growth Initiatives Haven’t Impressed

Growth gives us insight into a company’s long-term potential, but how capital-efficient was that growth? Enter ROIC, a metric showing how much operating profit a company generates relative to the money it has raised (debt and equity).

Floor And Decor historically did a mediocre job investing in profitable growth initiatives. Its five-year average ROIC was 8.8%, somewhat low compared to the best consumer retail companies that consistently pump out 25%+.

Final Judgment

Floor And Decor doesn’t pass our quality test. Following the recent decline, the stock trades at 32.2× forward P/E (or $62.53 per share). This valuation tells us a lot of optimism is priced in - we think there are better stocks to buy right now. Let us point you toward the most entrenched endpoint security platform on the market.

Stocks We Would Buy Instead of Floor And Decor

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The names generating the next wave of massive growth are right here in our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.