Allegion (ALLE) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 17 ...

Industry Overview - The Zacks Security and Safety Services industry is positioned to benefit from strong demand for security products and solutions due to increasing awareness of safety for people and infrastructure [1] - The industry includes firms providing sophisticated security solutions for residential, commercial, and institutional purposes, including personal defense and vehicle recovery [3] Demand Drivers - Growing instances of terrorism and criminal activities are driving demand for security services, with rapid deployment of IP-based cameras enhancing safety and surveillance [4] - The rise in hacking incidents is increasing demand for Internet security products such as firewalls and intrusion detection systems [4] - E-commerce platforms are creating new opportunities for industry players [4] Government Support - Strong budgetary provisions and government funds are encouraging significant investments in research and development for advanced security products [5] - Collaboration between government agencies and industry participants is strengthening the security infrastructure of smart cities [5] Financial Metrics - The industry's long-term debt/capital ratio is 0.61, significantly higher than the Zacks S&P 500 composite index's 0.27, indicating a focus on innovation and product development [6] - The industry currently carries a Zacks Industry Rank of 97, placing it in the top 40% of 244 Zacks industries, indicating solid near-term prospects [7][8] Performance Comparison - Over the past year, the industry has increased by 14%, underperforming the S&P 500's 17.7% and the broader Industrial Products sector's 14.1% [9] Valuation - The industry is trading at a forward P/E of 16.89X, lower than the S&P 500's 23.36X and the sector's 21.57X, suggesting potential undervaluation [12] Notable Companies - **Intellicheck (IDN)**: A technology company benefiting from a strong customer base and demand for identity verification technology, with shares up 120.2% in the past year [16][17] - **Allegion (ALLE)**: A global provider of security products, well-positioned due to strong demand in the Americas and strategic acquisitions, with shares gaining 25.5% in the past year [20][21] - **Resideo Technologies (REZI)**: Engaged in home safety and security products, poised to benefit from demand for connected smoke detectors, with shares up 48.4% in the past year [24][25] - **Napco Security (NSSC)**: Provides electronic security systems, benefiting from growth in equipment revenues, with shares gaining 6.5% in the past year [28][29]

Core Insights - Allegion plc (ALLE) is experiencing strong momentum across its segments, driven by stable demand in end markets such as education, healthcare, government, hospitality, and retail, along with strategic acquisitions [1][10] Allegion Americas Segment - The Allegion Americas segment is benefiting from steady demand and acquisitions, particularly the Next Door Company and Trimco, which enhance its product offerings [1][10] - Growth in the non-residential business is supported by increased demand for products, indicating a positive outlook for the segment [1] Allegion International Segment - The Allegion International segment is seeing increased demand for electronic security products, driven by heightened awareness of safety and security [2] - Positive price realization and acquisitions, including Brisant, ELATEC, and Lemaar Pty, are contributing to the segment's growth [2][4][5] Acquisitions and Market Expansion - Allegion has expanded its market share and product offerings through strategic acquisitions, including Brisant and UAP Group Limited, which enhance its presence in the U.K. residential and non-residential markets [3] - The acquisition of ELATEC allows Allegion to broaden its global electronics portfolio in non-residential markets [4] - Trimco's acquisition boosts Allegion's door and frame portfolio, while Lemaar enhances its security and accessibility offerings in Australia [5] Financial Performance - Allegion is committed to rewarding shareholders, with dividends totaling $131.4 million in the first nine months of 2025, reflecting a 4.6% year-over-year increase [6] - Share repurchases amounted to $80 million during the same period, indicating a strong capital return strategy [6] Cost and Expense Challenges - The company is facing rising costs, with a 5.1% year-over-year increase in the cost of sales due to high raw material prices, and selling and administrative expenses rising by 11.2% [7] - Selling and administrative expenses as a percentage of total revenues increased by 80 basis points to 24% [7] Market Risks - Allegion's financial performance is influenced by various risks, including foreign currency exchange rates and interest rate fluctuations, particularly due to its significant international presence [8] - The appreciation of the U.S. dollar against local currencies may impact revenue in upcoming quarters [8] Competitive Landscape - Allegion operates in a competitive environment within the Security and Safety Services industry, facing competition from companies like Alarm.com Holdings, Cadre Holdings, and Intellicheck [9]

Company Overview - Allegion plc (NYSE:ALLE) is an electronic security company that provides physical and digital security solutions, including locks, exit devices, and integrated access control software [2]. Market Sentiment - Jim Cramer highlighted Allegion as a good investment opportunity, suggesting it is not overly expensive and can be bought during market weakness without significant risk [1]. - Barclays has reduced its price target for Allegion's stock to $180 from $187 while maintaining an Equal Weight rating, indicating a cautious outlook despite strengthening demand, particularly due to increased orders related to artificial intelligence [3]. Investment Considerations - While Allegion is recognized as a potential investment, there are opinions that certain AI stocks may offer greater upside potential and less downside risk [4].

Core Insights - Schlage has been recognized as the most trusted door lock and hardware brand for the seventh consecutive year in the 2026 America's Most Trusted® Door Locks & Hardware Study by Lifestory Research [1][2] Company Performance - Schlage achieved a Net Trust Quotient Score of 117.0, the highest among leading door hardware and lock brands, based on a survey of 7,209 individuals who actively shopped for door locks and hardware in the past year [2] Consumer Trust - The study emphasizes the importance of establishing trust among consumers, which is crucial for the success of any brand, particularly in the home security sector [4] - David Perozzi, General Manager of Allegion Home, highlighted the brand's commitment to quality and reliability, which has been maintained for over 100 years [3] Research Methodology - The Lifestory Research America's Most Trusted® study is recognized as the most extensive independent research program focused on consumer opinions regarding home products, utilizing high-quality social and opinion science research practices [7]

Company Overview - Allegion plc (ALLE) is valued at a market cap of $13.9 billion and is a global provider of security and access solutions, designing and manufacturing mechanical and electronic locks, door hardware, and access control systems for various markets [1] - The company is headquartered in Dublin and operates in over 130 countries, with major operations in the U.S., supported by well-known brands such as Schlage, Von Duprin, and CISA [1] Earnings Expectations - Allegion is expected to announce its fiscal Q4 earnings for 2025 soon, with analysts predicting a profit of $2.01 per share, which represents an 8.1% increase from $1.86 per share in the same quarter last year [2] - For FY2025, analysts forecast Allegion to report a profit of $8.21 per share, up 9% from $7.53 per share in fiscal 2024, with further growth expected to $8.78 in fiscal 2026, reflecting a year-over-year increase of 6.9% [3] Stock Performance - Allegion's stock has rallied 24.9% over the past 52 weeks, outperforming the S&P 500 Index's 16.7% increase and the Industrial Select Sector SPDR Fund's 22.5% return during the same period [4] - Despite the positive price momentum, shares declined by 2.4% on December 16 after Wells Fargo cut its price target to $175 from $185 while maintaining an "Equal-Weight" rating, indicating a more cautious outlook [5] Analyst Ratings - Wall Street analysts have a moderately optimistic view on ALLE's stock, with an overall "Moderate Buy" rating; among 12 analysts, three recommend "Strong Buy" and nine suggest "Hold" [6] - The mean price target for ALLE is $182.70, indicating an 11.7% premium from current price levels [6]

Core Viewpoint - Allegion plc is a significant player in the global security products market, specializing in access control systems, with a market capitalization of $13.8 billion and a diverse portfolio of well-known brands [1][2]. Group 1: Company Overview - Allegion is categorized as a large-cap stock, reflecting its substantial influence in the security and safety industry [2]. - The company serves commercial, institutional, and residential markets, with a strong presence in North America and expanding international operations [2]. Group 2: Stock Performance - Allegion reached a 52-week high of $180.68 on October 21, but has since seen a decline, trading approximately 9.8% below that peak [3]. - Over the past three months, Allegion's stock has decreased by 7.5%, underperforming the Industrial Select Sector SPDR Fund's (XLI) gain of 3.1% during the same period [3]. - Year-to-date, Allegion has delivered strong gains of 24.8% and 17.5% over the past 52 weeks, outperforming XLI's 19.2% rise in 2025 and 14.2% return over the past year [4]. Group 3: Financial Performance - In the third quarter, Allegion reported revenue of $1.07 billion, reflecting a year-over-year increase of 10.7%, with 5.9% organic growth [5]. - Adjusted EPS for the quarter increased by 6.5% to $2.30, indicating healthy profitability [5]. - The Americas region drove strong performance, and recent acquisitions contributed to international growth [5].

Group 1 - Allegion plc announced a quarterly dividend of $0.51 per ordinary share, payable on December 31, 2025, to shareholders of record on December 16, 2025 [1] - Allegion is a leading global provider of security products and solutions, focusing on innovative security and access solutions [2] - The company reported revenue of $3.8 billion in 2024, indicating a strong market presence [2] Group 2 - Allegion's product portfolio includes residential and commercial locks, door closers, exit devices, steel doors and frames, access control, and workforce productivity systems [2] - The company operates under well-known brands such as CISA®, Interflex®, LCN®, Schlage®, SimonsVoss®, and Von Duprin® [2]

Core Insights - Allegion US has announced enhancements to the LCN 2800IQ and 9500IQ Senior Swing series operators, featuring the new AdaptivIQ technology which allows for self-adjusting capabilities to improve performance in various environmental conditions [1][2][3] Product Features - The LCN Senior Swing is designed for durability and efficiency, providing consistent operation in high-traffic areas such as healthcare and offices, with reduced maintenance needs [2][3] - The combination of AdaptivIQ and Smart Power Boost technologies enables real-time adjustments to external factors like wind and HVAC pressure, enhancing user experience and safety [3] - The new control box includes 23 customizable user settings, an intuitive LCD screen, self-calibration, and real-time diagnostics, making it user-friendly for both installers and end-users [3][4] Customer Benefits - Existing customers can upgrade their current Senior Swing operators with new motor gearboxes and control boxes to access the latest features [4] - The enhancements aim to exceed customer expectations by providing customizable and reliable operation throughout the year [4] Industry Context - Allegion is recognized as a leader in security solutions, with a diverse portfolio that includes various brands and products aimed at enhancing safety and access control [6]

Core Insights - Schlage has launched the Refined Finishes Collection, featuring three new finishes designed to enhance interior spaces with understated elegance [1][2][3] Product Details - The collection includes three finishes: Matte White, Forest Shadow, and Golden Bronze, each crafted to complement Schlage's modern design forms [3][8] - The finishes are designed to provide a smooth, understated aesthetic that integrates seamlessly with various interior styles [2][4] Functionality and Installation - The Refined Finishes Collection offers versatile functionality, allowing for both non-locking and locking options, making it suitable for different types of doors [4] - Installation is designed to be quick and straightforward, enabling homeowners to upgrade their spaces without professional tools [4] Brand Recognition - Schlage has been recognized as America's Most Trusted Door Lockset Brand according to a study by Lifestory Research, highlighting the brand's strong reputation in the market [7]