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Here's Why You Should Invest in Allegion (ALLE) Stock Now
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Allegion plc (ALLE - Free Report) currently boasts robust growth prospects on strength in its businesses, solid product portfolio, restructuring actions and a sound capital-deployment strategy.
Notably, the Zacks Rank #2 (Buy) company has a market capitalization of $10.5 billion. In the past three months, the stock has gained 14.3% compared with the industry’s growth of 4.7%.
Let’s delve into the factors that make investment in the company a smart choice at the moment.
Business Strength: Allegion’s residential business is likely to show resilience during the coronavirus outbreak-led market downturn, backed by healthy backlog as well as strength across new construction and retail end markets. Also, the company expects its electronic products business to be a long-term growth driver, backed by a solid product portfolio, supply chain strength and a large customer base.
Investments in Innovations: The company is focused on updating its products and developing new ones to keep up with the changing market sentiment. Over time, sales for the company’s new electronic security products have increased considerably. Of late, growing popularity for its Schlage and Interflex branded products will be beneficial for the company.
Rewards to Shareholders: It remains committed to rewarding shareholders through share repurchases and dividend payouts. In the first nine months of 2020, the company repurchased shares worth $94.1 million and paid out dividends worth $88.3 million. In February 2020, it announced a 19% hike in its quarterly dividend rate.
Other Initiatives: Allegion's pricing and productivity initiatives, along with its restructuring and cost-reduction actions are likely to drive its profitability and help it maintain a healthy margin performance, going forward. For 2020, it anticipates to realize $80 million of cost reduction on a year-over-year basis.
In the past 60 days, the Zacks Consensus Estimate for its 2020 earnings has trended up from $4.26 to $4.79 on four upward estimate revisions against none downward.
Other Key Picks
Some other top-ranked stocks from the same space are Fortune Brands Home & Security, Inc. , Brady Corporation (BRC - Free Report) and Resideo Technologies, Inc. (REZI - Free Report) . While Fortune Brands sports a Zacks Rank #1 (Strong Buy), Brady and Resideo carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Fortune Brands has a trailing four-quarter earnings surprise of 23.02%, on average.
Brady has a trailing four-quarter earnings surprise of 2.95%, on average.
Resideo has a trailing four-quarter earnings surprise of 212.23%, on average.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Image: Bigstock
Here's Why You Should Invest in Allegion (ALLE) Stock Now
Allegion plc (ALLE - Free Report) currently boasts robust growth prospects on strength in its businesses, solid product portfolio, restructuring actions and a sound capital-deployment strategy.
Notably, the Zacks Rank #2 (Buy) company has a market capitalization of $10.5 billion. In the past three months, the stock has gained 14.3% compared with the industry’s growth of 4.7%.
Let’s delve into the factors that make investment in the company a smart choice at the moment.
Business Strength: Allegion’s residential business is likely to show resilience during the coronavirus outbreak-led market downturn, backed by healthy backlog as well as strength across new construction and retail end markets. Also, the company expects its electronic products business to be a long-term growth driver, backed by a solid product portfolio, supply chain strength and a large customer base.
Investments in Innovations: The company is focused on updating its products and developing new ones to keep up with the changing market sentiment. Over time, sales for the company’s new electronic security products have increased considerably. Of late, growing popularity for its Schlage and Interflex branded products will be beneficial for the company.
Rewards to Shareholders: It remains committed to rewarding shareholders through share repurchases and dividend payouts. In the first nine months of 2020, the company repurchased shares worth $94.1 million and paid out dividends worth $88.3 million. In February 2020, it announced a 19% hike in its quarterly dividend rate.
Other Initiatives: Allegion's pricing and productivity initiatives, along with its restructuring and cost-reduction actions are likely to drive its profitability and help it maintain a healthy margin performance, going forward. For 2020, it anticipates to realize $80 million of cost reduction on a year-over-year basis.
In the past 60 days, the Zacks Consensus Estimate for its 2020 earnings has trended up from $4.26 to $4.79 on four upward estimate revisions against none downward.
Other Key Picks
Some other top-ranked stocks from the same space are Fortune Brands Home & Security, Inc. , Brady Corporation (BRC - Free Report) and Resideo Technologies, Inc. (REZI - Free Report) . While Fortune Brands sports a Zacks Rank #1 (Strong Buy), Brady and Resideo carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Fortune Brands has a trailing four-quarter earnings surprise of 23.02%, on average.
Brady has a trailing four-quarter earnings surprise of 2.95%, on average.
Resideo has a trailing four-quarter earnings surprise of 212.23%, on average.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>