Frontdoor Stock Soars to All-Time High of $60.5 Amid Strong Growth

Published 27/01/2025, 18:26
Frontdoor Stock Soars to All-Time High of $60.5 Amid Strong Growth

Frontdoor , Inc. (NASDAQ:FTDR), a leading provider of home service plans with a market capitalization of $4.56 billion and annual revenue of $1.83 billion, has reached an all-time high of $60.5, marking a significant milestone for the company's stock performance. According to InvestingPro, the company maintains a "GREAT" financial health score. This peak reflects a robust year-over-year growth, with Frontdoor's stock value surging by an impressive 80.26% over the past year. Investors have shown increased confidence in the company's business model and growth strategy, evidenced by its healthy 53.8% gross profit margin and P/E ratio of 20. The achievement of an all-time high is a testament to Frontdoor's strong market position and the positive sentiment surrounding its future prospects. For deeper insights into FTDR's valuation and growth potential, access the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Frontdoor Inc. has been experiencing significant growth, as evidenced by its third-quarter performance. The company reported a 3% increase in revenue, reaching $540 million, and a 40% rise in net income to $100 million. Adjusted EBITDA also saw a 29% increase to $165 million, while gross margins reached a record high of 53%. Frontdoor anticipates a full-year revenue of approximately $1.83 billion, marking a 3% increase, and an adjusted EBITDA of around $430 million. Truist Securities and Goldman Sachs have both updated their outlooks on Frontdoor, with Truist Securities increasing the price target to $58 and retaining a Buy rating, and Goldman Sachs raising the price target to $46 while maintaining a Sell rating. Both firms have emphasized the company's strong third-quarter performance and future strategies, including the nearing completion of the 2-10 Home Buyers Warranty acquisition, which is expected to add over $100 million in revenue.

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