It’s opening stores left and right, it’s delivering double-digit growth numbers, it’s under-promising and over-delivering; by Cramer’s standards, Floor & Decor Holdings is an impressive stock and company to watch.
Better yet, the retailer is in a line of business that Amazon would be hard-pressed to challenge: selling specialty hard-surface flooring materials to commercial businesses and do-it-yourselfers.
“Floor & Decor is not in Amazon’s crosshairs. If you’re remodeling your house, you really do need to see this stuff in person,” Cramer said. “Amazon, I think, cannot kill these guys.”
The only issue Cramer could find with Floor & Decor, which came public in April, was its private-equity backers. Even with good fundamentals and a powerful growth rate, the company’s stock could fall under pressure if its private stakeholders decided to ring the register.
“I like Floor & Decor here, but with the private equity overhang and the nosebleed valuation, it may be worth being patient,” Cramer said. I suggest maybe you wait for the next slug of selling from the PE guys or a serious dip before you do any buying, but I am blessing the buying for Floor and Decor.”
Source : CNBC