Frontdoor (FTDR): Simplifying Home Services for Homeowners

Investment management company Curreen Capital released its third quarter 2024 Investor letter. A copy of the letter can be downloaded here. Although the overall market has seen an increase, many of the “ugly duckling” stocks the firm is concentrating on have become cheaper. This creates excellent opportunities to buy quality businesses while they are temporarily out of favor in the stock market. In the third quarter, the fund was up 0.9% compared to 5.89% for the S&P 500 Index. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.

Curreen Capital highlighted stocks like Frontdoor, Inc. (NASDAQ:FTDR), in the third quarter 2024 investor letter. Frontdoor, Inc. (NASDAQ:FTDR) Frontdoor, Inc. (NASDAQ:FTDR) is a US-based home service plan provider. The one-month return of Frontdoor, Inc. (NASDAQ:FTDR) was 14.92%, and its shares gained 66.01% of their value over the last 52 weeks. On November 7, 2024, Frontdoor, Inc. (NASDAQ:FTDR) stock closed at $56.99 per share with a market capitalization of $4.321 billion.

Curreen Capital stated the following regarding Frontdoor, Inc. (NASDAQ:FTDR) in its Q3 2024 investor letter:

“Frontdoor, Inc. (NASDAQ:FTDR) sells home service plans to homeowners. The company contracts with HVAC and other contractors and dispatches them when customers have problems with one of their major home appliances and systems (furnace, air conditioning, refrigerator, electrical system, etc). Frontdoor spun out of ServiceMaster in October 2018. Frontdoor serves about 2% of U.S. homes, and uses its free cash flow to grow organically, pay down debt, repurchase shares, and acquire complementary businesses.”

A close up of a service professional making repairs to a home appliance.

Frontdoor, Inc. (NASDAQ:FTDR) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held Frontdoor, Inc. (NASDAQ:FTDR) at the end of the second quarter which was 29 in the previous quarter. Frontdoor, Inc. (NASDAQ:FTDR) third quarter revenue increased 3% to $540 million. While we acknowledge the potential of Frontdoor, Inc. (NASDAQ:FTDR) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.