$7.18-5.23% today
AI Take · AlgoThesis
ADT trades at a remarkably compressed 9.0 P/E ratio—roughly one-third the market average—yet carries an RSI of 69.4 signaling overbought conditions, which creates a striking tension. The stock sits 5.76% short of float, modest but meaningful given the technical overheat. This valuation disconnect suggests either deep fundamental pessimism about growth prospects in security services, or genuine value hiding beneath near-term momentum exhaustion. The combination of depressed earnings multiples with stretched momentum makes ADT structurally vulnerable to profit-taking, particularly if sentiment shifts or growth stalls.
Snapshot
Market cap
$6.1B
P/E
9.0
Forward P/E
8.1
EPS (TTM)
$0.72
Dividend yield
2.92%
Net margin
12.1%
ROE
16.8%
RSI (14)
69
Beta
0.98
Short % of float
5.8%
Days to cover
3.2
52w high
No
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