Frontdoor Stock To $65?

FTDR: Frontdoor logo
FTDR
Frontdoor

Frontdoor (FTDR) stock has fallen by 28.8% in less than a month, from $69.38 on 10/23/2025 to $49.38 now. What comes next? As it turns out, we believe there is a good chance of a stock rebound considering history of recovery post-dips and our current Attractive opinion of the stock. Dip buying is a viable strategy for quality stocks that have a history of recovering from dips.

As it turns out, FTDR stock passes basic quality checks. The stock has returned (median) 59% in one year, and 75% as peak return following sharp dips (>30% in 30 days) historically. For quick background, FTDR provides home service plans covering repairs or replacements of major systems and appliances, along with on-demand services and a technology platform using augmented reality and machine learning.

For details on stock fundamentals and assessment: Read Buy or Sell Frontdoor Stock to see the full picture.
 
A single stock can be risky, but there is a huge value to a broader, diversified approach. Quiz time: Over the last 5 years, which index do you think the Trefis High Quality Portfolio outperformed — the S&P 500, the S&P 1500 Equal Weighted, or both? The answer might surprise you. See how our advisory framework helps stack the odds in your favor.

 
Historical Median Returns Post Dips
 

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Period Past Median Return
1M 10.2%
3M 31.3%
6M 43.8%
12M 59.3%

 
Historical Dip-Wise Details
 
FTDR had 4 events since 1/1/2010 where the dip threshold of -30% within 30 days was triggered

  • 75% median peak return within 1 year of dip event
  • 306 days is the median time to peak return after a dip event
  • -5.6% median max drawdown within 1 year of dip event

30 Day Dip FTDR Subsequent Performance
Date FTDR SPY 1Y Peak
Return
Max
Drop
# Days
to Peak
Median     59% 75% -6% 306
3062025 -30% -6% 36% 70% -9% 231
6132022 -33% -9% 51% 55% -6% 358
4022020 -31% -25% 68% 80% -5% 316
11122018 -48% -7% 97% 141% -4% 297

 
Frontdoor Passes Basic Financial Quality Checks
 
Revenue growth, profitability, cash flow, and balance sheet strength need to be evaluated to reduce the risk of a dip being the sign of a deteriorating business situation.

Quality Metrics Value Quality Check
Revenue Growth (LTM) 8.7% Pass
Revenue Growth (3-Yr Avg) 6.0% Pass
Operating Cash Flow Margin (LTM) 17.0% Pass
Leverage (see below) Pass
=> Interest Coverage Ratio 6.6  
=> Cash To Interest Expense Ratio 9.4  

 
Dip buying, while attractive, needs to be evaluated carefully from multiple angles. Such multi-factor analysis is exactly how we construct the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.