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Resideo Technologies, Inc. REZI shares rallied 10.3% in the last trading session to close at $16.20. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 17.3% loss over the past four weeks.
Shares of Resideo rallied on the news that President Trump has announcement a 90-day pause on tariffs for a dozen of countries. This policy shift was aimed to counteracting the sharp sell-off in the market and easing worries that higher tariffs might trigger a recession.
This residential comfort and security systems maker is expected to post quarterly earnings of $0.38 per share in its upcoming report, which represents a year-over-year change of -19.2%. Revenues are expected to be $1.74 billion, up 16.9% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and 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 belongs to the Zacks Security and Safety Services industry. Another stock from the same industry, MSA Safety (MSA), closed the last trading session 8.1% higher at $143.57. Over the past month, MSA has returned -12.9%.
MSA Safety's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.59. Compared to the company's year-ago EPS, this represents a change of -1.2%. MSA Safety currently boasts a Zacks Rank of #3 (Hold).
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Resideo Technologies, Inc. (REZI) : Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).