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Should Value Investors Buy Frontdoor (FTDR) Stock?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Frontdoor (FTDR - Free Report) is a stock many investors are watching right now. FTDR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 12.68, while its industry has an average P/E of 16.73. FTDR's Forward P/E has been as high as 24.33 and as low as 12.18, with a median of 16.44, all within the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. FTDR has a P/S ratio of 1.34. This compares to its industry's average P/S of 1.56.
Finally, our model also underscores that FTDR has a P/CF ratio of 11.85. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 28.30. Over the past year, FTDR's P/CF has been as high as 18.83 and as low as 10.98, with a median of 13.67.
These are just a handful of the figures considered in Frontdoor's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that FTDR is an impressive value stock right now.
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Should Value Investors Buy Frontdoor (FTDR) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Frontdoor (FTDR - Free Report) is a stock many investors are watching right now. FTDR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 12.68, while its industry has an average P/E of 16.73. FTDR's Forward P/E has been as high as 24.33 and as low as 12.18, with a median of 16.44, all within the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. FTDR has a P/S ratio of 1.34. This compares to its industry's average P/S of 1.56.
Finally, our model also underscores that FTDR has a P/CF ratio of 11.85. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 28.30. Over the past year, FTDR's P/CF has been as high as 18.83 and as low as 10.98, with a median of 13.67.
These are just a handful of the figures considered in Frontdoor's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that FTDR is an impressive value stock right now.