Frontdoor stock soars to 52-week high, hits $58.88

Frontdoor , Inc. (NASDAQ:FTDR) shares have reached a remarkable 52-week high, touching $58.88 in recent trading sessions. This milestone reflects a significant uptrend for the home-service plan provider, marking a substantial 71.59% increase in stock value over the past year. Investors have shown growing confidence in Frontdoor's business model and market position, propelling the stock to new heights and signaling a robust recovery from any previous lows. The company's performance, particularly in the context of a challenging economic environment, underscores its resilience and potential for continued growth.

In other recent news, Frontdoor Inc. has reported a notable growth in its third quarter, with a 3% increase in revenue to $540 million and a 40% rise in net income to $100 million. Furthermore, the company's adjusted EBITDA saw a 29% increase to $165 million, and gross margins reached a record high of 53%. These developments follow the completion of a $400 million share repurchase program and the initiation of a new one worth $650 million.

Truist Securities and Goldman Sachs have recently updated their outlooks on Frontdoor. Truist Securities raised its price target to $58 from $56, retaining a Buy rating, while Goldman Sachs increased its price target to $46 from $41, maintaining a Sell rating. These adjustments were based on Frontdoor's third-quarter performance and revised guidance, which led to increased earnings per share forecasts.

Frontdoor is also nearing the completion of the acquisition of 2-10 Home Buyers Warranty, expected to add over $100 million in revenue from the on-demand business. Despite a challenging real estate market, Frontdoor anticipates a full-year revenue of approximately $1.83 billion, marking a 3% increase, and an adjusted EBITDA of around $430 million. These are among the company's recent developments.

InvestingPro Insights

Frontdoor's recent stock performance aligns with several key metrics and insights from InvestingPro. The company's shares are trading near their 52-week high, with a remarkable 68.25% price total return over the past year. This strong performance is further emphasized by the stock's 62.03% gain over the last six months, indicating sustained investor confidence.

InvestingPro data reveals that Frontdoor operates with a moderate level of debt and has maintained profitability over the last twelve months. The company's P/E ratio of 19.5 suggests a relatively reasonable valuation considering its growth prospects. Additionally, Frontdoor's revenue for the last twelve months stands at $1.827 billion, with a solid gross profit margin of 53.8%.

InvestingPro Tips highlight that analysts have revised their earnings upwards for the upcoming period, which could further support the stock's upward trajectory. The company's strong return over the last month and three months also aligns with the article's mention of the stock reaching new highs.

For investors seeking a deeper understanding of Frontdoor's potential, InvestingPro offers 12 additional tips, providing a comprehensive analysis of the company's financial health and market position.

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