Is Frontdoor (FTDR) a Solid Growth Stock? 3 Reasons to Think "Yes"

Core Viewpoint - Growth investors are focused on stocks with above-average financial growth, but identifying stocks that can fulfill their potential is challenging due to associated risks and volatility [1] Group 1: Company Overview - Frontdoor (FTDR) is currently recommended as a growth stock by the Zacks Growth Style Score system, which evaluates a company's real growth prospects beyond traditional metrics [2] - The stock has a favorable Growth Score and a top Zacks Rank, indicating strong potential for growth investors [2][9] Group 2: Earnings Growth - Earnings growth is a critical factor for growth investors, with double-digit growth being highly desirable [4] - Frontdoor's projected EPS growth for the current year is 18.6%, significantly higher than the industry average of 11.9% [5] Group 3: Asset Utilization - Frontdoor has an asset utilization ratio (sales-to-total-assets ratio) of 1.57, indicating efficient use of assets to generate sales compared to the industry average of 0.89 [6] Group 4: Sales Growth - The company's sales are expected to grow by 3% this year, outperforming the industry average of 1.1% [7] Group 5: Earnings Estimate Revisions - The current-year earnings estimates for Frontdoor have been revised upward, with the Zacks Consensus Estimate increasing by 8.3% over the past month [9] - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements [8] Group 6: Investment Potential - Frontdoor's combination of a Growth Score of A and a Zacks Rank 1 suggests it is a potential outperformer and a solid choice for growth investors [10]