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Here's Why It is Appropriate to Retain Allegion (ALLE) Now
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Allegion plc (ALLE - Free Report) is benefiting from robust end-market demand and effective pricing despite labor, material and freight-related cost inflation. The company anticipates revenues to increase 9-10.5% year over year in 2023, with organic growth of 2.5-4.5%. Adjusted earnings per share are anticipated to be $6.30-$6.50 in 2023. The midpoint of the guided range of $6.40 implies a 12.5% jump from the 2022 figure of $5.69.
Strength in non-residential, residential and electronics end markets is benefiting ALLE’s Allegion Americas segment. The segment’s organic sales are anticipated to increase 11.5-13.5% in 2023.
Allegion has been strengthening and expanding its businesses through asset additions for a while. ALLE acquired Plano Group through one of its subsidiaries in January 2023. The acquisition expands its Interflex portfolio and AWFM business with new capabilities in SaaS models and recurring revenue solutions. Also, the buyout of Access Technologies Business enhanced the company’s access, egress and access control solutions offerings. The addition of certain assets of Astrum Benelux B.V. and WorkforceIT B.V. (July 2021) boosted Allegion’s Interflex unit’s cloud and mobile solutions along with its software-as-a-service capabilities.
Allegion is committed to rewarding its shareholders handsomely with dividend payments and share buybacks. In 2022, the company disbursed dividends worth $143.9 million and bought back 0.5 million shares for $61 million. It also hiked its quarterly dividend rate by 10% in February 2023. At the time of exiting 2022, the company had shares worth $140.5 million under its 2020-approved $800 million program.
In light of the abovementioned positives, we believe, investors should hold on to Allegion stock for now, as suggested by its current Zacks Rank #3 (Hold). In the past six months, the stock has risen 9.5%.
Image Source: Zacks Investment Research
Stocks to Consider
Some top-ranked companies from the Industrial Products sector are discussed below:
In the past 60 days, estimates for Deere & Company’s fiscal 2023 earnings have increased 8.6%. The stock has rallied 11.7% in the past six months.
Alamo Group Inc. (ALG - Free Report) presently sports a Zacks Rank of 1. ALG’s earnings surprise in the last four quarters was 6.0%, on average.
In the past 60 days, estimates for Alamo’s fiscal 2023 earnings have increased 7.5%. The stock has gained 41.3% in the past six months.
A. O. Smith Corporation (AOS - Free Report) presently carries a Zacks Rank #2 (Buy). AOS’ earnings surprise in the last four quarters was 3.2%, on average.
In the past 60 days, estimates for A. O. Smith’s fiscal 2023 earnings have increased 4.4%. The stock has gained 32.3% in the past six months.
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Here's Why It is Appropriate to Retain Allegion (ALLE) Now
Allegion plc (ALLE - Free Report) is benefiting from robust end-market demand and effective pricing despite labor, material and freight-related cost inflation. The company anticipates revenues to increase 9-10.5% year over year in 2023, with organic growth of 2.5-4.5%. Adjusted earnings per share are anticipated to be $6.30-$6.50 in 2023. The midpoint of the guided range of $6.40 implies a 12.5% jump from the 2022 figure of $5.69.
Strength in non-residential, residential and electronics end markets is benefiting ALLE’s Allegion Americas segment. The segment’s organic sales are anticipated to increase 11.5-13.5% in 2023.
Allegion has been strengthening and expanding its businesses through asset additions for a while. ALLE acquired Plano Group through one of its subsidiaries in January 2023. The acquisition expands its Interflex portfolio and AWFM business with new capabilities in SaaS models and recurring revenue solutions. Also, the buyout of Access Technologies Business enhanced the company’s access, egress and access control solutions offerings. The addition of certain assets of Astrum Benelux B.V. and WorkforceIT B.V. (July 2021) boosted Allegion’s Interflex unit’s cloud and mobile solutions along with its software-as-a-service capabilities.
Allegion is committed to rewarding its shareholders handsomely with dividend payments and share buybacks. In 2022, the company disbursed dividends worth $143.9 million and bought back 0.5 million shares for $61 million. It also hiked its quarterly dividend rate by 10% in February 2023. At the time of exiting 2022, the company had shares worth $140.5 million under its 2020-approved $800 million program.
In light of the abovementioned positives, we believe, investors should hold on to Allegion stock for now, as suggested by its current Zacks Rank #3 (Hold). In the past six months, the stock has risen 9.5%.
Image Source: Zacks Investment Research
Stocks to Consider
Some top-ranked companies from the Industrial Products sector are discussed below:
Deere & Company (DE - Free Report) presently sports a Zacks Rank #1 (Strong Buy). DE’s earnings surprise in the last four quarters was 4.7%, on average. You can see the complete list of today’s Zacks #1 Rank stocks.
In the past 60 days, estimates for Deere & Company’s fiscal 2023 earnings have increased 8.6%. The stock has rallied 11.7% in the past six months.
Alamo Group Inc. (ALG - Free Report) presently sports a Zacks Rank of 1. ALG’s earnings surprise in the last four quarters was 6.0%, on average.
In the past 60 days, estimates for Alamo’s fiscal 2023 earnings have increased 7.5%. The stock has gained 41.3% in the past six months.
A. O. Smith Corporation (AOS - Free Report) presently carries a Zacks Rank #2 (Buy). AOS’ earnings surprise in the last four quarters was 3.2%, on average.
In the past 60 days, estimates for A. O. Smith’s fiscal 2023 earnings have increased 4.4%. The stock has gained 32.3% in the past six months.