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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Frontdoor (FTDR - Free Report) . FTDR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Investors should also note that FTDR holds a PEG ratio of 0.92. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. FTDR's PEG compares to its industry's average PEG of 0.99. Over the past 52 weeks, FTDR's PEG has been as high as 0.96 and as low as 0.63, with a median of 0.80.
Finally, our model also underscores that FTDR has a P/CF ratio of 13.14. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. FTDR's current P/CF looks attractive when compared to its industry's average P/CF of 15.67. Within the past 12 months, FTDR's P/CF has been as high as 20.27 and as low as 13.09, with a median of 16.04.
These are only a few of the key metrics included in Frontdoor's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, FTDR looks like an impressive value stock at the moment.
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Is Frontdoor (FTDR) Stock Undervalued Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Frontdoor (FTDR - Free Report) . FTDR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Investors should also note that FTDR holds a PEG ratio of 0.92. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. FTDR's PEG compares to its industry's average PEG of 0.99. Over the past 52 weeks, FTDR's PEG has been as high as 0.96 and as low as 0.63, with a median of 0.80.
Finally, our model also underscores that FTDR has a P/CF ratio of 13.14. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. FTDR's current P/CF looks attractive when compared to its industry's average P/CF of 15.67. Within the past 12 months, FTDR's P/CF has been as high as 20.27 and as low as 13.09, with a median of 16.04.
These are only a few of the key metrics included in Frontdoor's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, FTDR looks like an impressive value stock at the moment.