5 Most Volatile Stocks to Buy Now

4. Resideo Technologies, Inc. (NYSE:REZI)

Number of Hedge Fund Holders: 20    

52-Week Price Range ($): 14.95 – 28.35

Resideo Technologies, Inc. (NYSE:REZI) develops, manufactures, and sells comfort, residential thermal, and security solutions to the commercial and residential end markets in the United States, Europe, and internationally. It is one of the top volatile stocks to invest in. On November 1, Resideo Technologies posted earnings for the third quarter of 2022, reporting earnings per share of $0.42, missing market estimates by $0.14. The revenue over the period was $1.62 billion, up 8% compared to the revenue over the same period last year and missing market estimates by $70 million.

On October 17, Morgan Stanley analyst Erik Woodring maintained an Equal Weight rating on Resideo Technologies, Inc. (NYSE:REZI) stock and lowered the price target to $26 from $32, noting that consumer and enterprise checks deteriorated in Q3.  

Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Ariel Investments is a leading shareholder in Resideo Technologies, Inc. (NYSE:REZI) with 12.8 million shares worth more than $245 million. 

In its Q1 2022 investor letter, Ariel Investments, an asset management firm, highlighted a few stocks and Resideo Technologies, Inc. (NYSE:REZI) was one of them. Here is what the fund said:

“During the quarter, Ariel Fund added shares of the leading supplier of residential thermal, comfort, and security solutions, Resideo Technologies, Inc. (NYSE:REZI). While the company has struggled to find its footing since being spun out of Honeywell in 2018, we see early evidence that the new management’s long-term strategic vision is both achievable and not yet being embraced by investors. We view this as an opportunity to own a niche business, well positioned to benefit from the ongoing housing recovery and a secular preference for more connected smart home solutions.”