Jim Cramer on Resideo Technologies: "Precisely the Kind of Stock That You Should be Buying"

Resideo Technologies, Inc. (NYSE:REZI) is one of the stocks Jim Cramer commented on. Inquiring about the stock, a caller noted its Honeywell spin-off origin, recent 52-week high, an upgrade from Morgan Stanley, and insider buying. Cramer replied:

“Okay, so candidly, when it was first spun off, I was not a fan because I did not think rates were going to come down and really be good for the housing market. Now, that’s precisely the kind of stock that you should be buying. I’ve been saying to the club that Home Depot is the best stock to buy right here for the last 40 points. I like it, but I think Resideo is interesting even up here.”

Resideo Technologies, Inc. (NYSE:REZI) provides comfort, energy management, and security solutions, in addition to with distributing low-voltage and smart home products. Ariel Investments stated the following regarding Resideo Technologies, Inc. (NYSE:REZI) in its second quarter 2025 investor letter:

“Additionally, supplier of residential thermal, comfort and security solutions, Resideo Technologies, Inc. (NYSE:REZI) advanced following solid quarterly earnings results highlighted by organic revenue growth and margin expansion. Synergies from the integration of Snap One are also ahead of expectations. Meanwhile, REZI expects to substantially mitigate any headwinds from tariffs by increasing prices, repositioning inventory and by running its factories at different utilization rates. We believe REZI’s earnings potential is underappreciated. The company is entering a new phase of sustainable growth driven by a secular preference for more connected smart home solutions and product innovation.”

While we acknowledge the potential of REZI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.