The following are today's upgrades for Validea's Earnings Yield Investor model based on the published strategy of Joel Greenblatt. This value model looks for companies with high return on capital and earnings yields.
FRONTDOOR INC (FTDR) is a mid-cap growth stock in the Business Services industry. The rating according to our strategy based on Joel Greenblatt changed from 80% to 90% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Frontdoor, Inc. is building a tech-enabled and people-driven platform for home services. The Company provider of home service plans in the United States, with a nationwide network. Its customizable home service plans help customers protect and maintain their homes. The Company has four home service plan brands: American Home Shield, HSA, Landmark and OneGuard. The Company's services include Home Appliances Coverage and Home Systems Coverage. Home appliances coverage, which includes water heaters, garbage disposals, instant hot/cold water dispensers, doorbells, smoke detectors, ceiling fans, central vacuums, refrigerators, clothes washers, clothes dryers, ranges/ovens/cooktops, dishwashers, built-in microwave ovens, trash compactors, garage door openers, free-standing ice makers, and built-in food centers. Home systems coverage, which includes air conditioning and ductwork, heating and ductwork, electrical and plumbing and stoppages.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
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Detailed Analysis of FRONTDOOR INC
About Joel Greenblatt: In his 2005 bestseller The Little Book That Beats The Market, hedge fund manager Joel Greenblatt laid out a stunningly simple way to beat the market using two -- and only two -- fundamental variables. The "Magic Formula," as he called it, produced back-tested returns of 30.8 percent per year from 1988 through 2004, more than doubling the S&P 500's 12.4 percent return during that time. Greenblatt also produced exceptional returns as managing partner at Gotham Capital, a New York City-based hedge fund he founded. The firm averaged a remarkable 40 percent annualized return over more than two decades.
About Validea: Validea is an investment research service that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here