Resideo Technologies REZI shares ended the last trading session 16.2% higher at $28.52. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 6% gain over the past four weeks.
Shares of Resideo surged following its announcement to spin off the ADI Global Distribution business into a standalone public company by the second half of 2026. Also, Resideo signed a definitive agreement to eliminate future indemnity payments to Honeywell International Inc. HON through a one-time $1.59 billion cash settlement, enhancing financial flexibility and boosting investor confidence.
This residential comfort and security systems maker is expected to post quarterly earnings of $0.54 per share in its upcoming report, which represents a year-over-year change of -12.9%. Revenues are expected to be $1.83 billion, up 14.9% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Resideo Technologies, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on REZI going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Resideo Technologies is a member of the Zacks Security and Safety Services industry. One other stock in the same industry, Cadre Holdings, Inc. (CDRE), finished the last trading session 1.5% lower at $32.7. CDRE has returned 4.7% over the past month.
Cadre Holdings, Inc.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.25. Compared to the company's year-ago EPS, this represents a change of -19.4%. Cadre Holdings, Inc. currently boasts a Zacks Rank of #4 (Sell).
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Resideo Technologies, Inc. (REZI): Free Stock Analysis Report Cadre Holdings, Inc. (CDRE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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