Reasons Why Allegion Stock Should be in Your Portfolio Now

Allegion plc ALLE is poised to benefit from strength across its businesses, focus on operational excellence, accretive acquisitions and shareholder-friendly policies. The company remains focused on investing in growth opportunities and strengthening its long-term market position.ALLE, which has a market capitalization of $10.7 billion, currently carries a Zacks Rank #2 (Buy). Let’s delve into the factors that have been aiding the firm for a while now.Business Strength: Allegion is benefiting from strong momentum across its segments. Stable demand across several end markets like education, healthcare, government, hospitality and retail within the non-residential business is driving the Americas segment. The increase in demand for residential and non-residential products also bodes well. The segment’s revenues increased 6.4% year over year in the fourth quarter of 2024.Increased demand for electronic security products, driven by growing awareness about the security and safety of people and infrastructure, is aiding the Allegion International segment. It is worth noting that the segmental revenues increased 1.5% year over year in the fourth quarter.For 2025, the company expects the Allegion Americas segment’s revenues to increase in the low to mid-single-digits and the Allegion International segment’s revenues to be flat year over year.Accretive Acquisitions: Allegion is focused on strengthening its business and product offerings through acquisitions. In April 2025, ALLE acquired Trimco Hardware (Trimco), along with its brands and various assets, through one of its subsidiaries. The inclusion of Trimco’s expertise in specialty solutions, coupled with its strong innovation capabilities, will enable ALLE to boost its door and frame portfolio. In June 2024, the company acquired Krieger Specialty Products. The addition of Krieger’s expertise in specialty solutions enabled ALLE to strengthen its door and frame portfolio. In the same month, it purchased Unicel Architectural Corp, which enabled it to boost its product portfolio within the non-residential business. Both the acquired businesses have been incorporated into the Americas segment. Also, in February 2025, it inked a deal to buy Lemaar Pty Ltd. (Lemaar). This acquisition is expected to boost Allegion’s security and accessibility portfolio in Australia. It’s worth noting that in the fourth quarter, acquisitions boosted the company’s sales by 2%.ALLE Stock’s Price PerformanceIn the past three months, the company’s shares have lost 3.7% compared with the industry‘s 11.7% decline. Although its shares have declined in the past three months, the stock has soared 23.2% in the past couple of years, higher than the 9.1% growth recorded by the industry.Image Source: Zacks Investment ResearchRewards to Shareholders: The company remains committed to increasing shareholders’ value through dividend payments and share repurchases. In 2024, it paid out dividends of $166.9 million, reflecting an increase of 5.2% year over year. In the same period, Allegion repurchased shares for $220 million.Exiting 2024, ALLE was left to repurchase shares worth $240 million under its 2023-approved program. Also, in February 2025, it announced a 6% hike in its quarterly dividend rate, which is currently 51 cents per share.Estimate Revisions: The Zacks Consensus Estimate for ALLE’s 2025 earnings is pegged at $7.73 per share, indicating an increase of 1.6% from the 60-day-ago figure. The consensus estimate for 2026 earnings is pegged at $8.15 per share, indicating a rise of 5.1% in the same period.Other Key PicksOther top-ranked stocks from the same space are discussed below.ADT Inc. ADT presently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. It has a trailing four-quarter earnings surprise of 6.3%, on average. The consensus estimate for ADT’s 2025 earnings has increased 1.2% in the past 60 days.Emerson Electric Co. EMR presently carries a Zacks Rank of 2. It has a trailing four-quarter average earnings surprise of 4.3%. The Zacks Consensus Estimate for EMR’s fiscal 2025 (ending September 2025) earnings has improved 1% in the past 60 days.AZZ Inc. AZZ currently carries a Zacks Rank of 2. AZZ delivered a trailing four-quarter average earnings surprise of 15.2%. In the past 60 days, the Zacks Consensus Estimate for AZZ’s fiscal 2025 (ended February 2025) earnings has decreased 1.3%.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Emerson Electric Co. (EMR): Free Stock Analysis Report AZZ Inc. (AZZ): Free Stock Analysis Report ADT Inc. (ADT): Free Stock Analysis Report Allegion PLC (ALLE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks