3 Reasons Why Growth Investors Shouldn't Overlook Frontdoor (FTDR)

Core Viewpoint - Growth investors are increasingly focused on identifying stocks with above-average financial growth, which can lead to solid returns, but finding such stocks can be challenging due to inherent risks and volatility [1] Group 1: Company Overview - Frontdoor (FTDR) is currently recommended as a cutting-edge growth stock due to its favorable Growth Score and top Zacks Rank [2] - The company has a historical EPS growth rate of 4.8%, but projected EPS growth for this year is expected to be 18.6%, significantly higher than the industry average of 11.1% [4] Group 2: Financial Metrics - Frontdoor has an impressive asset utilization ratio (sales-to-total-assets ratio) of 1.57, indicating that the company generates $1.57 in sales for every dollar in assets, compared to the industry average of 0.89 [5] - The company's sales are projected to grow by 3% this year, outperforming the industry average growth of 1.5% [6] Group 3: Earnings Estimates - The current-year earnings estimates for Frontdoor have been revised upward, with the Zacks Consensus Estimate increasing by 0.9% over the past month, indicating a positive trend in earnings estimate revisions [7][8] - Frontdoor's combination of a Growth Score of A and a Zacks Rank 1 positions it well for potential outperformance in the market [8][9]