Ariel Investments released its second-quarter investor letter for the Ariel Focus Fund, noting a +4.75% return despite market volatility. Top five holdings for 2025 are outlined in the letter. Resideo Technologies, Inc. (NYSE: REZI) was highlighted for its 10.97% one-month return and solid quarterly earnings, with a market capitalization of $3.589 billion.

Resideo Technologies, Inc. (REZI) is praised for organic revenue growth, margin expansion, and synergies from the Snap One integration. The company plans to mitigate tariff headwinds through price increases and operational adjustments. Ariel Investments sees REZI’s earnings potential as underappreciated due to smart home solutions demand and product innovation.

Despite its positive performance, Resideo Technologies, Inc. (REZI) is not among the 30 most popular stocks among hedge funds. The company reported a revenue increase of 19% year-over-year in Q1 2025, with 27 hedge fund portfolios holding its stock. While REZI has potential, Ariel Investments believes other AI stocks offer higher upside potential and lower downside risk in the current market.

Read more at Yahoo Finance: Here’s Why Resideo Technologies (REZI) Surged in Q2