Here's Why Investing in Allegion (ALLE) Stock Makes Sense Now

Core Viewpoint - Allegion plc (ALLE) is positioned for growth due to the strength in its Allegion International segment, strategic acquisitions, and shareholder-friendly initiatives [1]. Growth Catalysts - Business Strength: The Allegion International segment is experiencing strong momentum, with a 1.4% year-over-year revenue increase in Q1, driven by rising demand for electronic security products [2]. The adoption of advanced technologies in this market is expected to enhance Allegion's performance in the upcoming quarters [2]. - Revenue Projections: Allegion anticipates a revenue increase of 1.5-3.5% year-over-year for the Allegion International segment in 2024, with total revenues expected to follow the same growth band [3]. Organic sales are projected to rise by 1-3%, leading to an overall sales increase of 2.5% for the year [3]. Accretive Acquisitions - Allegion is enhancing its capabilities through strategic acquisitions, which contributed 0.3% to sales in Q1 [4]. The acquisition of Montajes Electronics Dorcas S.L. in March 2024 is expected to strengthen its security product portfolio and expand into healthcare and education markets [4]. Additionally, the acquisition of Boss Door Controls in February 2024 complements Allegion's U.K. business [4]. - The acquisition of Plano Group in January 2023 expanded Allegion's Interflex portfolio with new SaaS capabilities [5]. A previous acquisition of Access Technologies Business for $900 million has also enhanced Allegion's access control solutions [5]. Rewards to Shareholders - Allegion is committed to returning value to shareholders, with dividends totaling $42.1 million in Q1 2024, a 6.9% increase year-over-year [5]. The company repurchased shares worth $40 million in the same period and announced a 7% increase in its quarterly dividend rate to 48 cents per share [5]. Northward Estimate Revision - The Zacks Consensus Estimate for ALLE's 2024 earnings has been revised upward by 1% in the past 60 days [6]. Price Performance - Shares of ALLE have appreciated by 14.5% over the past year [6].