The Relative Strength (RS) Rating for Frontdoor stock jumped into a new percentile Wednesday, with a rise from 72 to 82.
IBD's proprietary RS Rating identifies technical performance by using a 1 (worst) to 99 (best) score that identifies how a stock's price performance over the trailing 52 weeks matches up against other publicly traded companies.
History shows that the market's biggest winners often have an RS Rating north of 80 in the early stages of their moves.
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Is Frontdoor Stock A Buy?
Frontdoor stock broke out earlier, but has fallen back below the prior 36.97 entry from a cup without handle. In the case where a stock breaks out then falls 7% or more below the entry price, it's considered a failed breakout. If that happens, it's best to wait for a new base to form. Also understand that the most recent pattern is a later-stage base, and such bases are more prone to failure.
Earnings growth moved up last quarter from 54% to 59%, but the top line fell from 8% to 3%.
Frontdoor stock earns the No. 7 rank among its peers in the Building-Maintenance & Services industry group. EMCOR Group, IES Holdings and Rollins Inc are among the top 5 highly rated stocks within the group.
