Allegion (ALLE) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.The power of a chang ...

Core Insights - Allegion plc (ALLE) is experiencing stable demand across various end markets, including education, healthcare, government, hospitality, and retail, supported by recent acquisitions [1] - The company anticipates a revenue increase of 1-3% year over year in 2025, with organic sales expected to rise by 1.5-3.5% [1][6] Acquisitions and Expansion - In June 2025, Allegion completed the acquisition of ELATEC to enhance its global electronics portfolio in non-residential markets [2] - The acquisition of Novas in June 2025 is aimed at augmenting Allegion's door hardware portfolio [2] - Allegion acquired Trimco Hardware in April 2025, which strengthens its door and frame offerings in the Americas [2] - The acquisition of Lemaar Pty Ltd in March 2025 boosted Allegion's security and accessibility portfolio in Australia [3] Financial Performance and Shareholder Returns - Allegion paid dividends totaling $43.6 million in Q1 2025, marking a 3.6% year-over-year increase, and repurchased shares worth $40 million [4] - The company announced a 6% increase in its quarterly dividend rate, now at 51 cents per share [4] Cost Pressures and Profitability - Allegion faced a 3.4% year-over-year increase in the cost of sales in Q1 2025 due to high raw material costs [8] - Selling and administrative expenses rose by 3.1% year over year, attributed to investments in new products and growth initiatives [8] - The company is exposed to risks from adverse currency fluctuations, with a 0.8% negative impact from forex issues in Q1 [9]

"Innovation is central to who we are—we're constantly exploring new ideas and insights that not only deliver the trusted experiences and peace of mind consumers expect from Schlage, but also reflect their personal style and design preferences," said David Perozzi, general manager, Allegion Home. "Just as Walter Schlage's original inventions redefined door hardware, Pin & Tumbler Studio embodies the same spirit of creativity, ingenuity and forward-thinking solutions that have set Schlage apart in the market. ...

Key Takeaways ALLE will acquire ELATEC for $379.1 million to strengthen its global access technology capabilities. ELATEC adds RFID expertise and supports nearly 100 credential types in global markets. The deal supports ALLE's growth via acquisitions, enhancing non-residential electronics offerings.Allegion plc (ALLE) recently inked a definitive deal to acquire ELATEC, including Elatec GmbH and other group entities (ELATEC), from Summit Partners through one of its subsidiaries. The deal is valued at €330 ...

Core Insights - Allegion US is showcasing the integration of Schlage XE360™ electronic locks with Zentra, enhancing access control for multifamily properties [1][2] - The partnership combines Zentra's cloud technology with Schlage XE360™ Series, providing a user-friendly experience for property managers [2][3] Product Features - Schlage XE360™ Series includes various configurations such as tubular, mortise, and exit trims, offering a cohesive look for properties [4] - The innovative FleX Module™ allows for easy upgrades from offline to real-time connected solutions, adapting to future security trends [4] Market Impact - The integration aims to simplify access management for multifamily properties, meeting evolving demands in security and connectivity [5] - Property managers will benefit from enhanced tools for managing high-traffic communities and improving reporting visibility [4][5] Company Background - Allegion designs and manufactures security and access solutions, with a strong portfolio of brands including Schlage® and CISA® [7] - The company focuses on innovative solutions that enhance safety in residential and commercial environments [7]

Group 1 - Allegion plc (ALLE) has acquired Nova Hardware Pty Ltd (Novas) to enhance its door hardware product offerings, although the financial terms of the transaction remain undisclosed [1][7] - Novas specializes in designing and selling door hardware products, which will allow Allegion to strengthen its market presence in the multifamily and commercial sectors in Australia [2][7] - The acquisition aligns with Allegion's growth strategy focused on strategic acquisitions and innovation, as seen in previous acquisitions like Trimco Hardware and Lemaar Pty Ltd [4][5] Group 2 - Allegion's performance is bolstered by the Allegion Americas segment, which is experiencing increased demand for non-residential products across various end markets, including education and hospitality [6] - The company currently holds a Zacks Rank of 3 (Hold), with a year-to-date stock gain of 5.7%, outperforming the industry growth of 4.6% [6] - Rising costs of sales due to higher material costs and increasing selling and administrative expenses present challenges to Allegion's profitability [9]

Von Duprin's first offering engineered to protect internal components on outdoor applications CARMEL, Ind., May 28, 2025 /PRNewswire/ -- Allegion US, a leading provider of security solutions, technology and services, has introduced the Outdoor Defense (OUT) option for 98/99 exit devices, the first Von Duprin product designed to protect device functionality in outdoor conditions, providing the reliability, quality and function expected from Von Duprin."As the demand for reliable security solutions in outdoor ...

Industry Overview - The Zacks Security and Safety Services industry is positioned to benefit from strong demand for security products and solutions, driven by increased awareness of safety for people and infrastructure [1][4] - The industry includes firms providing advanced security solutions for residential, commercial, and institutional purposes, including personal defense and hazard detection [3] Demand Drivers - Rising instances of terrorism and criminal activities are increasing the demand for security services, with governments and businesses deploying IP-based cameras for enhanced surveillance [4] - Urbanization and the need for infrastructure safety are also contributing to industry growth, alongside a surge in demand for cybersecurity products due to hacking incidents [4] Investment Trends - Increased government budgets and funding are encouraging significant investments in research and development for advanced security products [5] - Collaboration between government agencies and industry players is aimed at strengthening security infrastructure in smart cities [5] Financial Metrics - The industry's long-term debt/capital ratio is 0.62, significantly higher than the Zacks S&P 500 composite index's 0.28, indicating a focus on innovation and product development [6] - The industry currently trades at a forward P/E of 16.56X, lower than the S&P 500's 21.88X and the sector's 19.35X, suggesting potential undervaluation [13] Performance Comparison - The Zacks Security and Safety Services industry has returned 7.7%, underperforming the S&P 500's 12% growth but outperforming the broader Industrial Products sector, which declined by 1.9% [10] Key Players - **Life360**: Engaged in location tracking and safety services, with a 42.7% share price increase over the past six months and a 9.1% upward revision in 2025 earnings estimates [18][19] - **Allegion**: A leading provider of security products, benefiting from demand in non-residential markets, with a 4.4% share price increase and a 0.5% upward revision in earnings estimates [22][23] - **Alarm.com**: Focused on IoT solutions, experiencing strong momentum in its SaaS business, with a 0.4% upward revision in earnings estimates [26][27] - **MSA Safety**: Develops safety products with a 12% share price increase in the past month, consistently surpassing earnings estimates [30][31]

Core Viewpoint - Allegion plc is experiencing strong momentum across its segments, driven by stable demand in various end markets and strategic acquisitions, which are enhancing its product portfolio and market position [1][2][3]. Group 1: Segment Performance - The Allegion Americas segment is benefiting from stable demand in education, healthcare, government, hospitality, and retail markets, along with acquisitions like Next Door Company and Trimco [1][2]. - The Allegion International segment is seeing increased demand for electronic security products, supported by heightened awareness of security and safety [1]. Group 2: Acquisitions and Portfolio Expansion - Allegion acquired Trimco Hardware in April 2025, enhancing its specialty solutions and innovation capabilities within the Allegion Americas segment [2]. - The acquisition of Lemaar Pty Ltd in March 2025 bolstered Allegion's security and accessibility portfolio in Australia, integrating it into the Allegion International segment [2]. - The acquisition of Next Door Company in February 2025 expanded Allegion's doors and frames portfolio, while Krieger Specialty Products and Unicel Architectural Corp were also acquired to strengthen its non-residential business [3]. Group 3: Financial Performance and Shareholder Returns - In Q1 2025, Allegion paid dividends totaling $43.6 million, a 3.6% increase year-over-year, and repurchased shares worth $40 million, with an additional $200 million remaining under its buyback program [4]. - Allegion announced a 6% increase in its quarterly dividend rate, now at 51 cents per share [4]. Group 4: Market Performance - Year-to-date, Allegion's shares have gained 9.3%, outperforming the industry growth of 5.6% [5]. Group 5: Cost Challenges - Allegion is facing rising costs, with a 3.4% year-over-year increase in the cost of sales and a 3.1% rise in selling and administrative expenses in Q1 2025, attributed to investments in new products and growth initiatives [7][8]. Group 6: International Expansion Risks - Allegion plans to expand into new overseas markets but faces risks from currency fluctuations, particularly the impact of a strengthening U.S. dollar, which affected margins by 0.8% in Q1 [9].

Welcome to Our Webcast Our Event Will Start Soon Creating a Safer & More Accessible World Investor & Analyst Day May 6, 2025 Cautionary Statements Forward-Looking Statements This presentation contains "forward-looking statements," which are statements that are not historical facts. These forward-looking statements generally are identified by the words "believe," "aim," "project," "expect," "anticipate," "estimate," "forecast," "outlook," "intend," "strategy," "future," "opportunity," "plan," "may," "should, ...