Allegion (ALLE) Upgraded to Strong Buy: Here's Why

Core Viewpoint - Allegion (ALLE) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][2]. Earnings Estimates and Stock Performance - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, making it a valuable tool for investors [2][3]. - Allegion's rising earnings estimates and the Zacks upgrade suggest an improvement in the company's underlying business, likely leading to an increase in stock price [4]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [6]. - The system maintains a balanced distribution of ratings, ensuring that only the top 5% of stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions [8][9]. Recent Earnings Estimate Revisions - For the fiscal year ending December 2025, Allegion is expected to earn $8.09 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 5.9% over the past three months [7].