Have you been paying attention to shares of Frontdoor (FTDR)? Shares have been on the move with the stock up 15.6% over the past month. The stock hit a new 52-week high of $70.77 in the previous session. Frontdoor has gained 16.9% since the start of the year compared to the 14.1% gain for the Zacks Construction sector and the 5.9% return for the Zacks Building Products - Miscellaneous industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on February 26, 2026, Frontdoor reported EPS of $0.23 versus consensus estimate of $0.11.
For the current fiscal year, Frontdoor is expected to post earnings of $4.32 per share on $2.17 in revenues. This represents a 5.62% change in EPS on a 3.74% change in revenues. For the next fiscal year, the company is expected to earn $4.79 per share on $2.29 in revenues. This represents a year-over-year change of 10.82% and 5.41%, respectively.
Valuation Metrics
While 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 has run ahead of itself.
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). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Frontdoor has a Value Score of B. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 15.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 19.5X. On a trailing cash flow basis, the stock currently trades at 12.3X versus its peer group's average of 14.1X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We 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 #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
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 still be poised for more gains ahead.
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 Jacobs Solutions Inc. (J). J has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of A, and a Momentum Score of D.
Earnings were strong last quarter. Jacobs Solutions Inc. beat our consensus estimate by 0.66%, and for the current fiscal year, J is expected to post earnings of $7.13 per share on revenue of $13.17 billion.
Shares of Jacobs Solutions Inc. have gained 1.6% over the past month, and currently trade at a forward P/E of 19.5X and a P/CF of 16.9X.
The Building Products - Miscellaneous industry may rank in the bottom 77% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for FTDR and J, even beyond their own solid fundamental situation.
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Frontdoor Inc. (FTDR): Free Stock Analysis Report Jacobs Solutions Inc. (J): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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