Should You Invest In Floor & Decor Holdings (FND)?

Baron Funds, investment manager, has issued the Baron Real Estate Fund Q3 2022 Investor Letter. A copy can be downloaded here. The fund lost 4.86% (institutional shares) in the third quarter, compared to a 4.99% decline in its main benchmark, the MSCI USA IMI Advanced Real Estate Index. At the same time, the fund outperformed the MSCI US REIT Index, down 10.28% during the quarter. See also the fund's top five holdings in 2022.

In a letter to investors in the third quarter of 2022, Baron Funds Floor & Decor Holdings, Inc. identify the stock as (NYSE:FND). Floor & Decor Holdings, Inc. (NYSE: FND) is a commercial flooring and distribution company headquartered in Atlanta, Georgia. On November 18, 2022, Floor & Decor Holdings, Inc. (NYSE:FND) closed at $72.90 per share. Floor & Decor Holdings, Inc. monthly returns (NYSE:FND) is -2.03% and the stock is down 44.43% over the past 52 weeks. Floor & Decor Holdings, Inc. (NYSE:FND) has a market capitalization of $7.736 billion.

Baron Funds made the following comments about Floor & Decor Holdings, Inc. in its Letter to Investors for the third quarter of 2022. (NYSE:FND):

Floor & Decor Holdings, Inc. (NYSE: FND) is the leading and fastest growing specialty hardwood flooring retailer. The company offers the lowest prices and widest selection of tile, wood, laminate and other flooring products and has very attractive long-term growth opportunities. The company's stock is priced at just 24 times its estimated 2023 earnings per share, below its historical range of 25 to 50 earnings per share.
After sharp declines in the stock during the first six months of 2022 and strong results in the third quarter, Floor & Decor Holdings, Inc. posted strong results in the last quarter. The company is a leading, growing retailer of specialty hardwood flooring, offering the largest selection of tile, wood, laminate, vinyl, and natural stone flooring.
We are optimistic about the company's long-term growth prospects. These include the potential to grow the number of stores in the United States from 153 stores to more than 400 stores, strong same-store sales growth, growth in the Company's online business, professional and commercial customer growth opportunities, and designer services. The company is well positioned to benefit from headwinds and seculars that will help the US housing market in the years to come. At the current price of $71, we think the stock is an attractive value.

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Floor & Decor Holdings, Inc. (NYSE:FND) did not make the top 30 list of most popular hedge fund stocks. According to our database, Floor & Decor Holdings, Inc. (NYSE:FND) has a portfolio of 32 hedge funds, up from 29 in the previous quarter.

Floor & Decor Holdings, Inc. (NYSE:FND) in another post, shared a selection of Warren Buffett stocks. You can also find more letters from hedge fund investors and other major investors on the Letters from a Hedge Fund Investor Q3 2022 page.