Time To Buy The Dip In Frontdoor Stock?
Frontdoor (FTDR) stock has fallen by 12.7% in less than a month, from $69.11 on 3rd Mar, 2026, to $60.30 now. Should you buy this dip?
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. Historically, the median return for the 12-month period following sharp dips was 49% , with the median peak return reaching 71%. We define a sharp dip as a stock going down 20% or more in less than a 30-day period.
Below, we get into details of historical dips and subsequent returns.
Historical Median Returns Post Dips
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| Period | Past Median Return |
|---|---|
| 1M | 6.0% |
| 3M | 14.0% |
| 6M | 29.2% |
| 12M | 48.6% |
Historical Dip-Wise Details
FTDR had 9 events since 10/1/2018 where the dip threshold of -20% within 30 days was triggered
- 71% median peak return within 1 year of dip event
- 234 days is the median time to peak return after a dip event
- -8.4% 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 | 49% | 71% | -8% | 234 | ||||
| 11062025 | -26% | 2% | 22% | 40% | -1% | 117 | ||
| 3032025 | -29% | -1% | 63% | 71% | -9% | 234 | ||
| 12272022 | -21% | -4% | 78% | 86% | 0% | 220 | ||
| 9262022 | -21% | -14% | 49% | 80% | -5% | 312 | ||
| 5242022 | -22% | -10% | 29% | 30% | -20% | 356 | ||
| 2252022 | -20% | -7% | -8% | 7% | -36% | 52 | ||
| 12012021 | -22% | -0% | -31% | 14% | -41% | 41 | ||
| 3182020 | -24% | -27% | 70% | 75% | -8% | 331 | ||
| 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) | 13.4% | Pass |
| Revenue Growth (3-Yr Avg) | 8.0% | Pass |
| Operating Cash Flow Margin (LTM) | 19.9% | Pass |
| Leverage (see below) | – | Pass |
| => Interest Coverage Ratio | 5.3 | |
| => Cash To Interest Expense Ratio | 7.2 |
Not sure if you can take a call on FTDR stock? Consider portfolio approach
Portfolios Over Individual Stock Picks
Individual stocks are unpredictable. A smart portfolio helps you invest, limits downside shocks, and provides upside exposure.
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