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Strength Seen in Frontdoor (FTDR): Can Its 5.5% Jump Turn into More Strength?

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Frontdoor (FTDR - Free Report) shares soared 5.5% in the last trading session to close at $27.86. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 7.1% loss over the past four weeks.

The upside is mainly attributable to the company's efforts to combat inflation and improve margins, growth opportunities and pricing actions in its home services plan channels, and its financial outlook for 2023 and 2025. The company's plans to shift its marketing strategy and launch a new Frontdoor brand in the coming months is expected to drive growth.

This home services provider is expected to post quarterly earnings of $0.07 per share in its upcoming report, which represents a year-over-year change of +75%. Revenues are expected to be $360.05 million, up 2.6% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Frontdoor, the consensus EPS estimate for the quarter has been revised 260% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on FTDR going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Frontdoor is part of the Zacks Building Products - Miscellaneous industry. Construction Partners (ROAD - Free Report) , another stock in the same industry, closed the last trading session 3.3% higher at $27.64. ROAD has returned -8.5% in the past month.

For Construction Partners, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.18. This represents no change from what the company reported a year ago. Construction Partners currently has a Zacks Rank of #3 (Hold).


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