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Should Value Investors Buy Frontdoor (FTDR) Stock?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Frontdoor (FTDR - Free Report) . FTDR is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 16.66 right now. For comparison, its industry sports an average P/E of 17.24. Over the past year, FTDR's Forward P/E has been as high as 19.80 and as low as 12.01, with a median of 16.56.
Finally, we should also recognize that FTDR has a P/CF ratio of 15.52. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. FTDR's P/CF compares to its industry's average P/CF of 15.92. FTDR's P/CF has been as high as 17.65 and as low as 9.79, with a median of 14.49, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Frontdoor is likely undervalued currently. And when considering the strength of its earnings outlook, FTDR sticks out as one of the market's strongest value stocks.
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Should Value Investors Buy Frontdoor (FTDR) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Frontdoor (FTDR - Free Report) . FTDR is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 16.66 right now. For comparison, its industry sports an average P/E of 17.24. Over the past year, FTDR's Forward P/E has been as high as 19.80 and as low as 12.01, with a median of 16.56.
Finally, we should also recognize that FTDR has a P/CF ratio of 15.52. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. FTDR's P/CF compares to its industry's average P/CF of 15.92. FTDR's P/CF has been as high as 17.65 and as low as 9.79, with a median of 14.49, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Frontdoor is likely undervalued currently. And when considering the strength of its earnings outlook, FTDR sticks out as one of the market's strongest value stocks.