Frontdoor stock hits 52-week high of $53.13 amid strong growth By Investing.com
Shares of Frontdoor, Inc. (FTDR) soared to a 52-week high of $53.13, indicating an excellent year of performance with a 1-year change showing an impressive 57.1% increase. The company’s stock has been rising, fueled by strategic plans and strong market demand for its home service programs. Investors have shown their confidence in Frontdoor’s business model and growth prospects, causing the stock to reach new highs over the past year. This rise to a 52-week high underscores the positive sentiment regarding the company’s financial health and its potential for continued growth in the coming quarters.
In other recent news, Frontdoor, Inc. saw a promising second quarter of 2024. The company’s revenue rose 4% to $542 million, and gross margin expanded to a record 56%. Adjusted EBITDA and net income also saw significant increases, reaching $158 million and $92 million respectively. Frontdoor’s free cash flow doubled dramatically to $91 million, reflecting strong cost management and favorable revenue transformation.
In addition, Frontdoor announced the promotion of Evan Iverson to the role of Senior Vice President and Chief Operating Officer. Iverson’s expanded responsibilities will include managing the company’s technology and architecture strategy, in addition to his ongoing oversight of the operations of the American Home Shield and Frontdoor brands. The move is part of Frontdoor’s strategy to integrate technology more deeply into its service offering.
These are just a few of the latest developments at Frontdoor. The company also announced a new 3-year share repurchase plan of $650 million, which shows confidence in the company’s calculations. In addition, the acquisition of 2-10 Home Buyers Warranty is expected to close in the fourth quarter, adding to Frontdoor’s growth potential.
InvestingPro Insights
Frontdoor’s recent rise to a 52-week high is well supported by several key financial metrics and analyst sentiment. According to InvestingPro data, the company’s stock is trading near its 52-week high, at 99.3% of its peak. This is in line with the headline FTDR reaching $53.13, a new 52-week high.
The strong performance of the company is also proven by its impressive 6-month price return of 42.91%, which proves the article’s statement about the stock’s rise. Additionally, Frontdoor’s revenue growth of 5.6% over the past twelve months and strong EBITDA growth of 37.01% suggest that the company’s strategic plans are paying off.
InvestingPro Tips highlights that Frontdoor trades at a low P/E ratio relative to its near-term earnings growth, with a PEG ratio of 0.28. This shows that the stock still has room to grow despite the recent rally. In addition, analysts predict that the company will be profitable this year, supporting the positive sentiments of investors mentioned in the article.
For readers interested in diving deeper into Frontdoor’s financial prospects and growth, InvestingPro offers 8 additional tips that can provide valuable insight into investment decisions.
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