Resideo Technologies (REZI) Soars 36% on Strong Earnings

Resideo Technologies (REZI) shares rose to their highest level since February 2025 today, with an intraday gain of 1.75%.

The strategy of buying REZI shares after they reach a recent high and holding for one week resulted in a 7.07% return over the past five years, compared to a benchmark return of 41.68%. The strategy had a Sharpe ratio of 0.93, a maximum drawdown of -0.68%, and a volatility of 3.21%. It effectively managed risk but provided conservative returns, making it suitable for investors seeking stability.

Resideo Technologies has seen a significant surge in its stock price, increasing by 36% over the past month. This upward trend reflects a positive shift in investor sentiment, despite the fact that shareholders are still experiencing a loss of approximately 6.7% over the last year.

The company's Price-to-Sales (P/S) ratio stands at 0.4x, which is notably lower than the industry average. This low ratio suggests that Resideo Technologies' stock might be undervalued, even as the company has shown impressive revenue growth. Over the past year, Resideo Technologies has achieved a 14% increase in revenue, and a 19% aggregate increase over the last three years.

In the first quarter of 2025, Resideo Technologies reported revenues that exceeded expectations. The company's net revenue reached $1.8 billion, meeting or surpassing its Q1 2025 financial outlook. However, the company's earnings per share (EPS) fell short of expectations.

Recent trading has seen REZI shares cross above the average analyst 12-month target price of $20.00. Analysts have a Moderate Buy consensus rating with an average price target of $21.67, indicating an 8% implied upside from the current price level.

Resideo Technologies reported quarterly earnings of $0.63 per share, surpassing the consensus estimate of $0.30 per share. This strong earnings performance has contributed to the positive sentiment and stock price surge.