We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Allegion (ALLE) Gains From Business Strength Amid Headwinds
Read MoreHide Full Article
Allegion plc (ALLE - Free Report) has been benefiting from solid demand across its end markets and its focus on operational execution. The company’s effective pricing actions have been helping it offset the negative impact of inflationary pressure.
Solid momentum in electronics and software solutions end markets within the Allegion International segment is supporting its growth. The segment’s revenues increased 3% in the third quarter of 2023.
ALLE remains focused on acquiring businesses to gain access to new customers, regions and product lines. The company’s acquisition of Plano Group (in January 2023) expanded its Interflex portfolio and AWFM business with new capabilities in SaaS models and recurring revenue solutions. In July 2022, it acquired Stanley Black & Decker, Inc.’s (SWK - Free Report) Access Technologies Business. With this acquisition, Allegion enhanced its access, egress and access control solutions offerings. In the first nine months of 2023, buyouts boosted sales by 8.3%.
The company has been committed to rewarding shareholders through dividend payouts and share repurchases. For instance, in the first three quarters of 2023, Allegion paid out dividends worth $119.2 million, reflecting an increase of 10.3% year over year. In 2022, it disbursed dividends worth $143.9 million and bought back 0.5 million shares for $61 million. In February 2023, ALLE hiked its dividend rate by 10%.
In the past three months, this Zacks Rank #3 (Hold) company has gained 15.1% compared with the industry’s growth of 7.7%.
Image Source: Zacks Investment Research
Despite the positives, softness in the Allegion Americas segment, due to tepid demand for residential products, is concerning. Given current market conditions around new construction and consumer sentiment, it expects continued softness in demand for residential products.
Escalating cost of goods sold has also been a major concern for the company. Despite the cost-cutting measures undertaken in the first nine months, its cost of sales increased 8.2% year over year due to a rise in raw material costs. High costs pose a threat to the ALLE’s bottom line.
Alarm.com delivered a trailing four-quarter average earnings surprise of 35%. In the past 60 days, the Zacks Consensus Estimate for ALRM’s 2023 earnings has increased 12.4%. The stock has risen 19.6% in the past six months.
Lakeland Industries has a trailing four-quarter average earnings surprise of 38.4%. The consensus estimate for LAKE’s 2023 earnings has increased 8.6% in the past 60 days. Shares of the company have rallied 25.8% in the past three months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Allegion (ALLE) Gains From Business Strength Amid Headwinds
Allegion plc (ALLE - Free Report) has been benefiting from solid demand across its end markets and its focus on operational execution. The company’s effective pricing actions have been helping it offset the negative impact of inflationary pressure.
Solid momentum in electronics and software solutions end markets within the Allegion International segment is supporting its growth. The segment’s revenues increased 3% in the third quarter of 2023.
ALLE remains focused on acquiring businesses to gain access to new customers, regions and product lines. The company’s acquisition of Plano Group (in January 2023) expanded its Interflex portfolio and AWFM business with new capabilities in SaaS models and recurring revenue solutions. In July 2022, it acquired Stanley Black & Decker, Inc.’s (SWK - Free Report) Access Technologies Business. With this acquisition, Allegion enhanced its access, egress and access control solutions offerings. In the first nine months of 2023, buyouts boosted sales by 8.3%.
The company has been committed to rewarding shareholders through dividend payouts and share repurchases. For instance, in the first three quarters of 2023, Allegion paid out dividends worth $119.2 million, reflecting an increase of 10.3% year over year. In 2022, it disbursed dividends worth $143.9 million and bought back 0.5 million shares for $61 million. In February 2023, ALLE hiked its dividend rate by 10%.
In the past three months, this Zacks Rank #3 (Hold) company has gained 15.1% compared with the industry’s growth of 7.7%.
Image Source: Zacks Investment Research
Despite the positives, softness in the Allegion Americas segment, due to tepid demand for residential products, is concerning. Given current market conditions around new construction and consumer sentiment, it expects continued softness in demand for residential products.
Escalating cost of goods sold has also been a major concern for the company. Despite the cost-cutting measures undertaken in the first nine months, its cost of sales increased 8.2% year over year due to a rise in raw material costs. High costs pose a threat to the ALLE’s bottom line.
Stocks to Consider
We have highlighted a couple of better-ranked stocks, namely Alarm.com (ALRM - Free Report) and Lakeland Industries (LAKE - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Alarm.com delivered a trailing four-quarter average earnings surprise of 35%. In the past 60 days, the Zacks Consensus Estimate for ALRM’s 2023 earnings has increased 12.4%. The stock has risen 19.6% in the past six months.
Lakeland Industries has a trailing four-quarter average earnings surprise of 38.4%. The consensus estimate for LAKE’s 2023 earnings has increased 8.6% in the past 60 days. Shares of the company have rallied 25.8% in the past three months.