Resideo Technologies (REZI): Evaluating Undervaluation and Turnaround Prospects After Recent Share Momentum

Resideo Technologies (REZI) shares have edged slightly higher this week, gaining about 5% over the past month after a period of volatility. Investors appear to be weighing recent earnings trends against the company’s long-term value proposition.

See our latest analysis for Resideo Technologies.

Despite some turbulence in recent months, Resideo’s 1-year total shareholder return stands at a respectable 12.93%. Momentum may be building again, with a 37.27% year-to-date share price return. This suggests renewed optimism in the company’s longer-term prospects.

If Resideo’s turnaround has sparked your interest, this could be the perfect time to broaden your search and discover fast growing stocks with high insider ownership

But with shares still trading about 22% below intrinsic estimates and more than 32% under analyst targets, is there real value left on the table, or is the market already factoring in the company’s next phase of growth?

Most Popular Narrative: 24.7% Undervalued

With Resideo's fair value estimate set sharply above its last close, the narrative puts the spotlight on a significant potential upside. Attention turns to the company’s evolving position and what is fueling this bullish outlook.

The planned separation of the ADI segment and portfolio optimization are set to sharpen strategic focus and resource allocation. This enables both entities to better address evolving industry needs and unlock potential value, with positive implications for operating leverage, margin profile, and long-term earnings power.

Read the complete narrative.

Ready to dig into the thesis that is pushing Resideo’s value projection so far above its current share price? Underneath this call are bold revenue, profit, and margin assumptions, as well as a future price multiple that the market might not see coming. Want to know which numbers are driving this ambitious target? Dive in and see for yourself.

Result: Fair Value of $41.50 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, intensified competition from major tech rivals and dependence on legacy product lines could challenge Resideo's outlook and may limit future earnings growth.

Find out about the key risks to this Resideo Technologies narrative.

Build Your Own Resideo Technologies Narrative

If you see the numbers differently or enjoy doing your own deep dive, you can shape your own view of Resideo in just a few minutes, so why not Do it your way.

A great starting point for your Resideo Technologies research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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