#4 - Frontdoor (NASDAQ:FTDR)
Frontdoor Inc. (NASDAQ: FTDR) is one of the leading providers of home warranties in the United States. As the company’s 2024 earnings reports show, the home warranty business is largely agnostic to the broader housing market. That's because for a company like Frontdoor, the key to the business model is subscription renewal.
Year-over-year revenue in 2024 is up about 3%. But in the last quarter, YOY earnings per share increased by 46%. The company also continues to post positive net income and free cash flow.
This highlights two factors driving business growth. First, home ownership is rising among younger generations which are more likely to purchase a home warranty particularly as the average age of a home in the United States is around 40 years old.
The company’s growth is also showing up in the FTDR stock price which is up 65.9% in 2024 as of November 25. That has the stock about 17.5% above the consensus price target of analysts.
About Frontdoor
Frontdoor, Inc provides home warranties in the United States in the United States. Its customizable home warranties help customers protect and maintain their homes from costly and unplanned breakdowns of essential home systems and appliances. The company's home warranty customers subscribe to an annual service plan agreement that covers the repair or replacement of principal components of approximately 20 home systems and appliances, including electrical, plumbing, water heaters, refrigerators, dishwashers, and ranges/ovens/cooktops, as well as electronics, pools, and spas and pumps; and heating, ventilation, and air conditioning systems.
Read More - Current Price
- $59.49
- Consensus Rating
- Hold
- Ratings Breakdown
- 3 Buy Ratings, 1 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $49.50 (16.8% Downside)
