The path to growth is appears to be wide open for Frontdoor. The home service plans provider's earnings and revenue are both growing at a fast clip and it boasts outstanding ratings.
On Wednesday it got another rating upgrade as its IBD Relative Strength (RS) Rating climbed to 74, up from 69 the day before. The upgrade puts Frontdoor just six points below a key benchmark. The best growth stocks tend to have an RS Rating north of 80 in the early stages of their moves. See if Frontdoor can continue to show renewed price strength and clear that threshold.
Frontdoor reported a 28% pop in earnings last quarter to $1.63 per share on a 14% increase in revenue to $617 million. The prior three stanzas the Memphis-Tenn.-based company reported EPS growth ranging from 35% to 47%.
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Among its other ratings Frontdoor has a terrific 95 Earnings Per Share Rating and an even better 97 Composite Rating. The Composite score combines five separate proprietary ratings into one. The best growth stocks have a Composite Rating of 90 or better. Additionally, Frontdoor carries a B Accumulation/Distribution Rating.
Frontdoor is now considered extended and out of buy range after clearing a 55.60 buy point in a first-stage cup with handle. See if the stock forms a new pattern or follow-on buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week line.
Frontdoor earns the No. 3 rank among its peers in the Building-Maintenance & Services industry group. EMCOR Group is the No. 1-ranked stock within the group.
IBD's proprietary rating tracks market leadership with a 1 (worst) to 99 (best) score. The score shows how a stock's price performance over the last 52 weeks compares to all the other stocks in our database.
This article was created automatically with Stats Perform's Wordsmith software using data and article templates supplied by Investor's Business Daily. An IBD journalist may have edited the article.
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