12 Stocks That Are About to Explode

7. Frontdoor, Inc. (NASDAQ:FTDR)

Number of Hedge Fund Holders: 33

Analysts’ Upside Potential as of March 27: 65.3%

Frontdoor, Inc. (NASDAQ:FTDR) provides home service plans and related solutions designed to manage household repairs and maintenance for homeowners across the United States. The company operates primarily through its flagship brand, American Home Shield, offering subscription-based home warranty services that cover appliances, HVAC systems, plumbing, electrical systems, and other essential home components. FTDR connects customers with a nationwide network of contractors and technicians, facilitating repair services and preventative maintenance.

Frontdoor, Inc. (NASDAQ:FTDR) delivered exceptional financial performance in 2024, with revenue increasing 4% to $1.84 billion and adjusted EBITDA reaching an all-time high of $443 million, representing a 28% increase. The company achieved record gross margins of 54% and maintained the highest ever retention rate of 78.5%. The acquisition of 2-10 Home Buyers Warranty in December has strengthened FTDR’s market position by adding more members, revenue, and EBITDA. The company’s non-warranty services generated $107 million in revenue in 2024, demonstrating successful diversification beyond the core warranty business.

Frontdoor, Inc. (NASDAQ:FTDR) maintains a strong financial position with $474 million in cash and marketable securities at year-end. Looking forward, the company expects revenue growth of approximately 10% in 2025, targeting a range of $2 billion to $2.04 billion. The long-term outlook is positive, with revenue expected to grow to at least $2.5 billion in the period from 2026 through 2028, representing nearly a 25% increase. The company’s strategic focus includes growing warranty member count, maximizing 2-10 integration value, and expanding non-warranty services. With at least 2 insiders buying more than $100,000 worth of stock in 2025, FTDR is one of the stocks that are about to explode.