Frontdoor (FTDR) is an Incredible Growth Stock: 3 Reasons Why

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Frontdoor (FTDR) identified as a promising candidate due to its favorable growth metrics and strong Zacks Rank [1][2]. Group 1: Earnings Growth - Frontdoor has a historical EPS growth rate of 17.1%, with projected EPS growth of 8.8% for the current year, surpassing the industry average of 8.5% [4]. - Double-digit earnings growth is preferred by growth investors as it indicates strong future prospects and potential stock price gains [3]. Group 2: Asset Utilization - Frontdoor's asset utilization ratio (sales-to-total-assets ratio) stands at 1.03, indicating that the company generates $1.03 in sales for every dollar in assets, which is higher than the industry average of 0.82 [5]. Group 3: Sales Growth - The company's sales are projected to grow by 11.9% this year, significantly outpacing the industry average growth of 0.3% [6]. Group 4: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Frontdoor, with the Zacks Consensus Estimate for the current year increasing by 5.3% over the past month [8][7]. Group 5: Overall Assessment - Frontdoor has achieved a Growth Score of A and holds a Zacks Rank 1, indicating it is a potential outperformer and a solid choice for growth investors [10].