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Time to Buy These Security and Safety Services Stocks

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Earnings estimates have trended higher for several industrial products stocks in the Zacks Security and Safety Services Industry which is currently in the top 22% of over 250 Zacks industries.

Many of these companies are crucial to a number of broader industries in providing essential safety measures and should serve as strong investments with a few top-rated stocks in the space.

Here’s a look at three of these top-rated Zacks Security and Safety Services stocks that investors should consider at the moment.

MSA Safety (MSA - Free Report) )

Landing a Zacks Rank #1 (Strong Buy) MSA Safety is engaged in developing, manufacturing, and supplying safety products that protect people and facility infrastructure.

MSA’s core product lines include self-contained breathing apparatus, fixed gas and flame detection systems, handheld gas detection instruments, industrial and fire service head protection products, and fall protection devices.   

Furthermore, MSA has a broad reach with its products used in a variety of end markets including the oil, gas, and petrochemical industry along with the fire service, construction, and mining industries.

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MSA’s sales are projected to jump 10% this year and rise another 5% in fiscal 2024 to $1.78 billion. With MSA stock trading at $173 a share, respectable bottom-line growth is expected as well. Earnings are forecasted to be up 6% in FY23 and rise another 12% in FY24 at $6.71 per share.

More intriguing for MSA stock is that earnings estimate revisions are nicely up over the last 60 days. Notably, FY23 and FY24 EPS estimates are up 8% respectively.

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Lakeland Industries (LAKE - Free Report) )

Also sporting a Zacks Rank #1 (Strong Buy), Lakeland Industries stands out for its attractive stock price with earnings estimate revisions trending higher over the last 30 days.

Lakeland provides disposable garments and suits for use by toxic waste clean-up teams along with fire and heat protective apparel and protective systems for personnel. Additionally, Lakeland manufactures specialty safety and industrial work gloves as well as medical woven cloth garments.

With Lakeland stock trading at $14 a share, anticipated EPS growth is starting to make the company look undervalued.

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In its current fiscal 2024, Lakeland’s earnings are projected to soar 86% to $0.93 per share compared to EPS of $0.50 in FY23. Plus, fiscal 2025 earnings are expected to jump another 18% at $1.10 per share.  

Further strengthening the case that Lakeland stock may be undervalued is that it trades at 15.1X forward earnings which is a noticeable discount to the industry average of 22.6X and nicely beneath the S&P 500’s 20.4X.

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Allegion (ALLE - Free Report) )

Rounding out the list, Allegion plc is also worthy of investors’ consideration with a Zacks Rank #2 (Buy). Allegion is a leading global provider of security products and solutions.

As a leader in its space, Allegion has an extensive portfolio of mechanical and electronic security products that include doors and door systems, biometric and mobile access control systems, workforce productivity systems, and a wide range of security locks among other accessories.

Correlating with its strong portfolio of security products, Allegion’s top and bottom line growth has been very steady. Allegion’s sales are expected to jump 12% in fiscal 2023 and rise another 2% in FY24 to $3.78 billion. Even better, earnings are now forecasted to climb 16% this year and edge up another 5% in FY24 at $6.99 per share.

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Bottom Line

MSA Safety, Lakeland Industries, and Allegion stock are starting to look like they could move higher in 2023. With that being said, these top-rated Zacks Security and Safety Services stocks should be viable long-term investments as well.  


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Allegion PLC (ALLE) - free report >>

Lakeland Industries, Inc. (LAKE) - free report >>

MSA Safety Incorporporated (MSA) - free report >>

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