Reasons Why Allegion Stock Should be in Your Portfolio Now

Core Viewpoint - Allegion plc (ALLE) is positioned to benefit from strong business momentum, operational excellence, strategic acquisitions, and shareholder-friendly policies, focusing on growth opportunities and long-term market strength [1] Business Strength - Allegion is experiencing strong momentum across its segments, with stable demand in non-residential markets such as education, healthcare, government, hospitality, and retail driving growth in the Americas segment, which saw a revenue increase of 6.4% year over year in Q4 2024 [2] - The Allegion International segment is benefiting from increased demand for electronic security products, with revenues rising 1.5% year over year in Q4 2024; for 2025, the Americas segment is expected to see low to mid-single-digit revenue growth, while the International segment's revenues are projected to remain flat [3] Accretive Acquisitions - Allegion is enhancing its business and product offerings through acquisitions, including the acquisition of Trimco Hardware in April 2025, which will strengthen its door and frame portfolio [4] - In June 2024, Allegion acquired Krieger Specialty Products and Unicel Architectural Corp, both of which have been integrated into the Americas segment to enhance its non-residential product portfolio [5] - The acquisition of Lemaar Pty Ltd. in February 2025 is expected to enhance Allegion's security and accessibility portfolio in Australia; overall, acquisitions contributed to a 2% increase in sales in Q4 [6] Stock Performance - Over the past three months, ALLE shares have declined by 3.7%, while the industry has seen an 11.7% decline; however, over the past two years, ALLE shares have increased by 23.2%, outperforming the industry growth of 9.1% [7] Rewards to Shareholders - Allegion is committed to enhancing shareholder value through dividends and share repurchases, having paid out $166.9 million in dividends in 2024, a 5.2% increase year over year, and repurchased shares worth $220 million [10] - As of the end of 2024, Allegion had $240 million remaining for share repurchases under its 2023-approved program; in February 2025, the company announced a 6% increase in its quarterly dividend rate to 51 cents per share [11] Estimate Revisions - The Zacks Consensus Estimate for ALLE's 2025 earnings is $7.73 per share, reflecting a 1.6% increase from the previous estimate; the 2026 earnings estimate is $8.15 per share, indicating a 5.1% rise [11]