12 Best Industrial Distribution Stocks to Buy According to Hedge Funds

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

Number of Hedge Fund Holders: 33

Resideo Technologies, Inc. (NYSE:REZI) is a manufacturer and distributor of technology-driven products and solutions offering comfort, security, energy efficiency, and control to customers globally. Resideo operates in two segments, Products and Solutions, and ADI Global Distribution.

While Products and Solutions is a leading global provider of home air, water, security, and energy products and solutions, ADI is a leading global wholesale distributor of security, fire, AV, and other low-voltage products. The company boasts differentiated professional and channel relationships, driving repeat business with the homeowner. Resideo has exposure to attractive secular trends including connected home, home energy management, residential life safety, and energy delivery transitions. The firm has a solid presence in over 150 million homes, with 15 million systems installed in homes every year.

The business momentum has been robust, with both segments achieving year-over-year organic revenue growth in Q3 2024, the first time since the second quarter of 2022. While improving demand trends in key categories and cross-selling opportunities are driving significant benefits in ADI, Products and Solutions witnessed organic revenue growth based on strength in retail, HVAC, and electrical distribution.

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