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Time to Buy These Top-Rated Security and Safety Services Stocks

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The Zacks Security and Safety Services Industry is glowing among the industrial products sector as it is currently in the top 6% of over 250 Zacks industries.

With several stocks having representation on the Zacks Rank #1 (Strong Buy) list here are three of these top-rated Zacks Security and Safety Services companies to consider right now.

Alarm.com (ALRM - Free Report) : The buzz around Alarm.com’s stock comes as earnings estimate revisions for both fiscal 2023 and FY24 have risen noticeably higher over the last 60 days. Offering interactive security solutions for home and business owners, Alarm.com’s annual earnings are now forecasted to dip -2% this year but rebound and rise 10% in FY24 at $2.11 per share.

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Alarm.com’s stock is up +25% in 2023 and the company’s solid balance sheet has also been attractive with its cash on hand over $679 million at the end of the third quarter and has continued to climb from pre-pandemic levels of $120 million in 2019. In terms of solvency, Alarm.com looks like a sound investment as well with over $1.41 billion in total assets versus $713.45 million in total liabilities.

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Lakeland Industries (LAKE - Free Report) : One very intriguing safety services company is Lakeland Industries which provides a comprehensive line of industrial protective clothing and accessories for use by toxic waste clean-up teams and firefighters among others.

Lakeland’s stock has soared +35% this year but still offers nice value to investors at around $18 and 15.9X forward earnings. This is still a 26% discount to the industry average of 21.7X and nicely beneath the S&P 500’s 22.3X as well. Furthermore, over the last 30 days, earnings estimates for Lakeland’s current fiscal 2024 and FY25 are up 8% and 5% respectively.

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Fiscal 2024 EPS is now expected to skyrocket 128% to $1.14 per share compared to $0.50 a share in FY23. Plus, FY25 EPS is projected to expand another 10% and it may be an ideal time to buy into Lakeland’s steady growth and very favorable momentum.

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Resideo Technologies (REZI - Free Report) : Also standing out in terms of value is Resideo Technologies which provides critical comfort and security solutions primarily in residential areas along with low-voltage security products.

Resideo’s stock trades just under $20 and at a 12.8X forward earnings multiple offering a steep discount to the industry average and benchmark. Like many of its Zacks Security and Safety Services peers, earnings estimate revisions are noticeably higher over the last 60 days offering further support.

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To that point, Resideo’s FY23 earnings estimates have climbed 18% in the last two months from $1.25 a share to $1.48 per share. Even better, FY24 EPS estimates have soared 22% from $1.50 a share to $1.83 per share. With its strengthening outlook largely suggesting more upside, Resideo’s stock is up a very respectable +15% year to date.

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Other Stocks to Watch

These Zacks Security and Safety Services Industry stocks certainly look poised for more upside and two others to watch in the space are CLEAR Secure (YOU - Free Report)  and ADT (ADT - Free Report) . CLEAR Secure also belongs to the coveted Zacks Rank #1 (Strong Buy) list while ADT currently sports a Zacks Rank #2 (Buy).

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