Are Investors Undervaluing Resideo Technologies (REZI) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Resideo Technologies (REZI). REZI is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 9.38. This compares to its industry's average Forward P/E of 16.98. Over the last 12 months, REZI's Forward P/E has been as high as 10.88 and as low as 7.39, with a median of 8.60.
Finally, investors will want to recognize that REZI has a P/CF ratio of 9.44. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. REZI's current P/CF looks attractive when compared to its industry's average P/CF of 12.13. REZI's P/CF has been as high as 9.44 and as low as 5.79, with a median of 7.50, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Resideo Technologies is likely undervalued currently. And when considering the strength of its earnings outlook, REZI sticks out at as one of the market's strongest value stocks.
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Resideo Technologies, Inc. (REZI) : Free Stock Analysis Report
