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Allegion (ALLE) Gains 28% in a Year: Will the Trend Last?
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Allegion plc (ALLE - Free Report) appears in good shape, with its shares having rallied 27.8% in the past year compared with the industry’s 19.3% growth.
What’s Aiding ALLE?
Allegion has been benefiting from strong operational performance owing to steady demand across its end markets. Pricing actions are helping the company partly offset inflationary pressure. The company’s Americas segment has been witnessing strength driven by solid momentum in its non-residential business. The Allegion International segment is benefiting from strength in electronics and software solutions end markets.
ALLE has been strengthening its business through acquisitions. The company acquired Plano Group through one of its subsidiaries in January 2023. The acquisition expanded ALLE’s Interflex portfolio and AWFM business with new capabilities in SaaS models and recurring revenue solutions. In July 2022, the company acquired Access Technologies Business for $900 million. With this acquisition, Allegion has been able to enhance its access, egress and access control solutions offerings. In 2023, acquisitions boosted the company’s sales by 7.9%.
Image Source: Zacks Investment Research
Allegion is committed to returning value to shareholders through share repurchases and dividends. Dividends paid out totaled $158.7 million in 2023, reflecting an increase of 10.3% year over year. In 2023, Allegion repurchased 0.5 million shares for $59.9 million. In 2022, the company disbursed dividends worth $143.9 million and bought back shares for $61 million. At the time of exiting the fourth quarter of 2023, the company was left to repurchase shares worth $460 million under its 2023-approved program. In February 2024, Allegion announced a 7% hike in its quarterly dividend rate, which is now 48 cents per share.
Zacks Rank & Stocks to Consider
Allegion currently carries a Zacks Rank #3 (Hold). Some better-ranked companies from the Industrial Products sector are discussed below:
Image: Bigstock
Allegion (ALLE) Gains 28% in a Year: Will the Trend Last?
Allegion plc (ALLE - Free Report) appears in good shape, with its shares having rallied 27.8% in the past year compared with the industry’s 19.3% growth.
What’s Aiding ALLE?
Allegion has been benefiting from strong operational performance owing to steady demand across its end markets. Pricing actions are helping the company partly offset inflationary pressure. The company’s Americas segment has been witnessing strength driven by solid momentum in its non-residential business. The Allegion International segment is benefiting from strength in electronics and software solutions end markets.
ALLE has been strengthening its business through acquisitions. The company acquired Plano Group through one of its subsidiaries in January 2023. The acquisition expanded ALLE’s Interflex portfolio and AWFM business with new capabilities in SaaS models and recurring revenue solutions. In July 2022, the company acquired Access Technologies Business for $900 million. With this acquisition, Allegion has been able to enhance its access, egress and access control solutions offerings. In 2023, acquisitions boosted the company’s sales by 7.9%.
Image Source: Zacks Investment Research
Allegion is committed to returning value to shareholders through share repurchases and dividends. Dividends paid out totaled $158.7 million in 2023, reflecting an increase of 10.3% year over year. In 2023, Allegion repurchased 0.5 million shares for $59.9 million. In 2022, the company disbursed dividends worth $143.9 million and bought back shares for $61 million. At the time of exiting the fourth quarter of 2023, the company was left to repurchase shares worth $460 million under its 2023-approved program. In February 2024, Allegion announced a 7% hike in its quarterly dividend rate, which is now 48 cents per share.
Zacks Rank & Stocks to Consider
Allegion currently carries a Zacks Rank #3 (Hold). Some better-ranked companies from the Industrial Products sector are discussed below:
Applied Industrial Technologies, Inc. (AIT - Free Report) presently sports a Zacks Rank #1 (Strong Buy). It has a trailing four-quarter average earnings surprise of 10.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for AIT’s fiscal 2024 earnings has increased 2.5% in the past 60 days. The stock has gained 43.1% in the past year.
Caterpillar Inc. (CAT - Free Report) currently has a Zacks Rank #2 (Buy) and a trailing four-quarter earnings surprise of 19.7%, on average.
CAT’s earnings estimates have increased 0.7% for 2024 in the past 60 days. Shares of Caterpillar have risen 68.7% in the past year.
A. O. Smith Corporation (AOS - Free Report) presently carries a Zacks Rank of 2. It has a trailing four-quarter average earnings surprise of 12%.
The Zacks Consensus Estimate for AOS’ 2024 earnings increased 0.7% in the past 60 days. Shares of A. O. Smith have soared 30.4% in the past year.