Back to top

Image: Bigstock

Here's Why You Should Consider Investing in Allegion Stock Right Now

Read MoreHide Full Article

Key Takeaways

  • Allegion shares rose 27.9% year to date, outpacing the industry's 18.7% growth.
  • Segment growth is fueled by acquisitions and rising demand for security products.
  • ALLE returned value with $87.8M dividends and $80M in buybacks in H1 2025.

Allegion plc (ALLE - Free Report) is well-positioned to benefit from strength in the Allegion Americas and Allegion International segments. The company’s shareholder-friendly moves also augur well.

Shares of ALLE have gained 27.9% compared with the industry’s 18.7% growth in the year-to-date period.

Zacks Investment Research
Image Source: Zacks Investment Research

Let’s delve into the factors that make this Zacks Rank #1 (Strong Buy) company a smart investment choice at the moment.

Business Strength: Allegion is witnessing strong momentum across its segments. Stable demand across end markets like education, healthcare, government, hospitality and retail, and the acquisitions of Next Door Company and Trimco are aiding the Allegion Americas segment. The increase in demand for non-residential products also bodes well. An increase in demand for electronic security products, driven by growing awareness about the security and safety of people and infrastructure, is driving the Allegion International segment. Positive price realization and the acquisitions of ELATEC and Lemaar Pty also bode well for the segment.

Expansion Initiatives: The company solidified its product portfolio and leveraged business opportunities by adding assets. In July 2025, ALLE acquired ELATEC, including Elatec GmbH and other group entities (ELATEC), from Summit Partners. ELATEC’s expertise in RFID reader and credential solutions will enable Allegion to expand its global electronics portfolio in non-residential markets such as education, healthcare, hospitality, enterprise and industrial. The buyout of Novas Hardware in June 2025 enabled ALLE to boost its door hardware portfolio. In April 2025, the company 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 Allegion to boost its door and frame portfolio within the Allegion Americas segment. 

The company acquired Lemaar Pty Ltd (Lemaar) in March 2025. This acquisition boosted Allegion’s security and accessibility portfolio in Australia. The acquired company has been incorporated into the Allegion International segment. In February 2025, the company acquired Next Door Company, which expanded its doors and frames portfolio. Next Door is reported in its Allegion Americas segment. In June 2024, the company acquired Krieger Specialty Products. The addition of Krieger’s expertise in specialty solutions will enable Allegion to strengthen its door and frame portfolio. Also, in the same month, it purchased Unicel Architectural Corp. The inclusion of Unicel’s proficiency in glass and building envelope solutions will enable it to boost its product portfolio within the non-residential business. Both the acquired businesses have been incorporated into the Allegion Americas segment.

Rewards to Shareholders: Allegion is committed to returning value to shareholders through share repurchases and dividends. Dividends paid out totaled $87.8 million in the first six months of 2025, reflecting an increase of 4.8% year over year. In the same period, Allegion repurchased shares for $80 million. In 2024, the company disbursed dividends worth $166.9 million and bought back shares for $220 million.

Other Stocks to Consider

Some other top-ranked companies are discussed below:

ADT Inc. (ADT - Free Report) currently sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

ADT delivered a trailing four-quarter average earnings surprise of 12.8%. In the past 60 days, the Zacks Consensus Estimate for ADT’s 2025 earnings has increased 4.9%.

Alarm.com Holdings, Inc. (ALRM - Free Report) presently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter average earnings surprise of 15%.

The Zacks Consensus Estimate for ALRM’s 2025 earnings has increased a penny in the past 60 days.

Powell Industries, Inc. (POWL - Free Report) presently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 7.3%.

In the past 60 days, the consensus estimate for POWL’s fiscal 2025 earnings has increased 1.6%.

Published in