Frontdoor Inc. (FTDR) Hit a 52 Week High, Can the Run Continue?

A strong stock as of late has been Frontdoor (FTDR). Shares have been marching higher, with the stock up 16.5% over the past month. The stock hit a new 52-week high of $65.38 in the previous session. Frontdoor has gained 19.4% since the start of the year compared to the 8.8% move for the Zacks Construction sector and the 3.4% return for the Zacks Building Products - Miscellaneous industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on August 5, 2025, Frontdoor reported EPS of $1.63 versus consensus estimate of $1.44 while it beat the consensus revenue estimate by 2.48%.For the current fiscal year, Frontdoor is expected to post earnings of $3.9 per share on $2.07 in revenues. This represents a 16.42% change in EPS on a 12.2% change in revenues. For the next fiscal year, the company is expected to earn $4.06 per share on $2.19 in revenues. This represents a year-over-year change of 4.17% and 6.06%, respectively.Valuation MetricsWhile Frontdoor has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.Frontdoor has a Value Score of C. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 16.8X current fiscal year EPS estimates, which is not in-line with the peer industry average of 19.9X. On a trailing cash flow basis, the stock currently trades at 16.5X versus its peer group's average of 13.3X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Frontdoor currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Frontdoor fits the bill. Thus, it seems as though Frontdoor shares could have potential in the weeks and months to come.How Does FTDR Stack Up to the Competition?Shares of FTDR have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Arcosa, Inc. (ACA). ACA has a Zacks Rank of #2 (Buy) and a Value Score of C, a Growth Score of C, and a Momentum Score of C.Earnings were strong last quarter. Arcosa, Inc. beat our consensus estimate by 20.95%, and for the current fiscal year, ACA is expected to post earnings of $3.86 per share on revenue of $2.93 billion.Shares of Arcosa, Inc. have gained 1.6% over the past month, and currently trade at a forward P/E of 25.14X and a P/CF of 13.8X.The Building Products - Miscellaneous industry is in the top 34% of all the industries we have in our universe, so it looks like there are some nice tailwinds for FTDR and ACA, even beyond their own solid fundamental situation.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Frontdoor Inc. (FTDR): Free Stock Analysis Report Arcosa, Inc. (ACA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks