Resideo Technologies: Undervalued Stock With 56.5% Upside

Shashank Rai
104 Followers

Summary

  • Resideo Technologies is a leading player in home automation and security solutions that has grown revenues at 7% historically.
  • With recent acquisitions, Resideo aims to boost revenues by more than 12%, which would imply that the stock has 56.5% upside potential.
  • This estimate is higher than current analysts, implying that the stock is significantly undervalued by the market and other analysts.
  • Investors looking to diversify their portfolio with a steady growth stock should consider investing in REZI.

Woman leaving her house and locking the door using a home automation system

Hispanolistic/E+ via Getty Images

Investment Thesis

Resideo Technologies, Inc. (NYSE:REZI) has boosted its potential profitability from acquisitions and is currently undervalued by the market. It has the potential to grow revenues by 14% in 2022, which, relative to current analyst estimates of $32 per

This article was written by

104 Followers
I am a private investor who researches companies based on latest market trends. I run a long/short portfolio with investments based on my analysis. I invest in the companies that I write about using a variety of options strategies.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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