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Resideo Technologies (REZI) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Resideo Technologies (REZI - Free Report) closed at $29.62, marking a -1.13% move from the previous day. This change lagged the S&P 500's 0.16% loss on the day. Elsewhere, the Dow lost 0.39%, while the tech-heavy Nasdaq added 0.09%.

Wall Street will be looking for positivity from REZI as it approaches its next earnings report date. The company is expected to report EPS of $0.70, up 191.67% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.33 billion, up 13.17% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.77 per share and revenue of $5.34 billion. These totals would mark changes of +69.94% and +5.24%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for REZI. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 22.17% higher. REZI is holding a Zacks Rank of #1 (Strong Buy) right now.

Valuation is also important, so investors should note that REZI has a Forward P/E ratio of 10.85 right now. For comparison, its industry has an average Forward P/E of 24.4, which means REZI is trading at a discount to the group.

The Security and Safety Services industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 64, putting it in the top 26% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow REZI in the coming trading sessions, be sure to utilize Zacks.com.


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