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Here's Why Allegion (ALLE) Shares are Up 8.8% in 6 Months
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Allegion plc (ALLE - Free Report) appears in good shape, with its shares having rallied 8.8% in the past six months.
Image Source: Zacks Investment Research
What’s Aiding ALLE?
Allegion is benefitting from robust end-market demand and effective pricing policies. Strength in its non-residential and electronics end markets is supporting the company’s Allegion Americas segment. It anticipates revenues to increase 13-14% year over year for 2022, with organic growth of 9-10%. Its adjusted earnings per share are anticipated to be $5.40-$5.50 in 2022, higher than the $5.19 recorded in 2021.
The acquisitions made by Allegion should continue to boost its top line. The company acquired Plano Group through one of its subsidiaries in January 2023. The acquisition expands ALLE’s Interflex portfolio and AWFM business with new capabilities in SaaS models and recurring revenue solutions. Also, the buyout of Stanley Black & Decker, Inc.’s Access Technologies Business enhanced its access, egress and access control solutions offering. The addition of certain assets of Astrum Benelux B.V. and WorkforceIT B.V. (July 2021) boosted its Interflex unit’s cloud and mobile solutions along with its software-as-a-service capabilities.
The company’s measures to reward its shareholders through dividend payments and share buybacks are noteworthy. During the first nine months of 2022, Allegion paid out dividends worth $107.9 million and repurchased shares of $61 million. Its board of directors also announced a 14% hike in its quarterly dividend rate in February 2022.
Zacks Rank & Other Stocks to Consider
ALLE currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the Industrial Products sector are:
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Here's Why Allegion (ALLE) Shares are Up 8.8% in 6 Months
Allegion plc (ALLE - Free Report) appears in good shape, with its shares having rallied 8.8% in the past six months.
Image Source: Zacks Investment Research
What’s Aiding ALLE?
Allegion is benefitting from robust end-market demand and effective pricing policies. Strength in its non-residential and electronics end markets is supporting the company’s Allegion Americas segment. It anticipates revenues to increase 13-14% year over year for 2022, with organic growth of 9-10%. Its adjusted earnings per share are anticipated to be $5.40-$5.50 in 2022, higher than the $5.19 recorded in 2021.
The acquisitions made by Allegion should continue to boost its top line. The company acquired Plano Group through one of its subsidiaries in January 2023. The acquisition expands ALLE’s Interflex portfolio and AWFM business with new capabilities in SaaS models and recurring revenue solutions. Also, the buyout of Stanley Black & Decker, Inc.’s Access Technologies Business enhanced its access, egress and access control solutions offering. The addition of certain assets of Astrum Benelux B.V. and WorkforceIT B.V. (July 2021) boosted its Interflex unit’s cloud and mobile solutions along with its software-as-a-service capabilities.
The company’s measures to reward its shareholders through dividend payments and share buybacks are noteworthy. During the first nine months of 2022, Allegion paid out dividends worth $107.9 million and repurchased shares of $61 million. Its board of directors also announced a 14% hike in its quarterly dividend rate in February 2022.
Zacks Rank & Other Stocks to Consider
ALLE currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the Industrial Products sector are:
MRC Global Inc. (MRC - Free Report) presently sports a Zacks Rank #1 (Strong Buy). MRC’s earnings surprise in the last four quarters was 103%, on average. You can see the complete list of today’s Zacks #1 Rank stocks.
In the past 60 days, MRC Global’s earnings estimates have increased 16.2% for 2022. The stock has gained 24.1% in the past six months.
Xylem Inc. (XYL - Free Report) presently has a Zacks Rank of 2. XYL’s earnings surprise in the last four quarters was 13.3%, on average.
In the past 60 days, Xylem’s earnings estimates have increased 0.1% for 2022. The stock has gained 40.3% in the past six months.
EnerSys (ENS - Free Report) delivered an average four-quarter earnings surprise of 2.1%. ENS presently carries a Zacks Rank of 2.
ENS’ earnings estimates have increased 0.6% for fiscal 2023 in the past 60 days. The stock has gained 23.2% in the past six months.