3 Reasons Growth Investors Will Love Frontdoor (FTDR)

Core Viewpoint - Investors are seeking growth stocks that can deliver above-average growth and exceptional returns, with Frontdoor (FTDR) identified as a strong candidate due to its favorable growth metrics and Zacks Rank [2][9]. Group 1: Earnings Growth - Frontdoor's projected EPS growth for the current year is 9.5%, surpassing the industry average of 9.3% [4]. - Historical EPS growth for Frontdoor stands at 1.6%, but the focus should be on the projected growth which indicates strong future prospects [4]. Group 2: Asset Utilization - Frontdoor has an asset utilization ratio (sales-to-total-assets ratio) of 1.58, indicating that the company generates $1.58 in sales for every dollar in assets, compared to the industry average of 0.95 [5]. Group 3: Sales Growth - The company's sales are expected to grow by 2.9% this year, slightly above the industry average of 2.8% [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 6.8% over the past month [8]. - This trend in earnings estimate revisions is correlated with near-term stock price movements, suggesting potential for price appreciation [7]. Group 5: Overall Assessment - Frontdoor has achieved a Growth Score of A and a Zacks Rank 1 (Strong Buy), indicating it is a solid choice for growth investors [9][10].