Resideo(REZI) ZACKS·2024-11-20 15:16Core Viewpoint - Resideo Technologies (REZI) has experienced significant stock performance, with a 26.5% increase over the past month and a 38.8% rise since the beginning of the year, outperforming both the Zacks Industrial Products sector and the Zacks Security and Safety Services industry [1][3]. Financial Performance - Resideo Technologies reported earnings per share (EPS) of 0.57 [2]. - For the current fiscal year, the company is projected to achieve earnings of 6.74 billion, reflecting a 44.94% increase in EPS and an 8% increase in revenues [3]. - The next fiscal year forecasts earnings of 7.35 billion, indicating year-over-year changes of 13.76% in EPS and 9.03% in revenues [3]. Valuation Metrics - Resideo Technologies has a Value Score of A, while its Growth and Momentum Scores are D and C, respectively, resulting in a VGM Score of B [6]. - The stock trades at 11.4 times the current fiscal year EPS estimates, significantly lower than the peer industry average of 22 times [7]. - On a trailing cash flow basis, the stock trades at 11.5 times compared to the peer group's average of 15.5 times, suggesting it is not among the top value stocks [7]. Zacks Rank - Resideo Technologies holds a Zacks Rank of 1 (Strong Buy) due to rising earnings estimates, making it a favorable choice for investors [8]. - The recommendation is to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, which Resideo Technologies meets [8]. Industry Comparison - Alarm.com Holdings, Inc. (ALRM) is a notable peer with a Zacks Rank of 1 (Strong Buy) and a Value Score of C, a Growth Score of B, and a Momentum Score of B [9]. - Alarm.com reported a 26.53% earnings surprise last quarter and is expected to post earnings of 934.97 million for the current fiscal year [10]. - The Security and Safety Services industry is performing well, ranking in the top 29% of all industries, indicating positive conditions for both REZI and ALRM [11].