Allegion plc ALLE is well-positioned to benefit from strength in the Allegion Americas and Allegion International segments. The company’s shareholder-friendly moves also augur well.

Headquartered in Dublin, Ireland, Allegion is a leading global provider of security products and solutions for business and domestic purposes. The company offers an extensive portfolio of mechanical and electronic security products, including doors and door systems, electronic security products, biometric and mobile access control systems, locks, locksets, exit devices, portable locks, workforce productivity systems and other accessories. Shares of ALLE have gained 1.2% against the industry’s 3.4% decline in the year-to-date period.

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Let’s delve into the factors that make this Zacks Rank #2 (Buy) company a smart investment choice at the moment.

Business Strength: Allegion is witnessing strong momentum across its segments. Stable demand across end markets like education, healthcare, government, hospitality and retail and the acquisitions of Krieger and Unicel within the non-residential business are driving the Allegion Americas segment. The increase in demand for residential and non-residential products also bodes well. 

Further, an increase in demand for electronic security products, driven by growing awareness about the security and safety of people and infrastructure, is aiding the Allegion International segment. Increased adoption of advanced technologies and solutions in the electronics security products market, such as wireless locks and mobile-enabled smart locks, is expected to drive Allegion’s performance in the quarters ahead.

Expansion Initiatives: The company solidified its product portfolio and leveraged business opportunities by adding assets. In the fourth quarter of 2024, acquisitions boosted its sales by 2%. The company inked a deal to buy Lemaar Pty Ltd (Lemaar) in February 2025. This acquisition is expected to boost Allegion’s security and accessibility portfolio in Australia. The acquired company will be incorporated into the Allegion International segment. Subject to customary closing conditions, this acquisition is expected to close in the first quarter of 2025.

In June 2024, it acquired Krieger Specialty Products. The addition of Krieger’s expertise in specialty solutions will enable Allegion to strengthen its door and frame portfolio. Also, in the same month, it purchased Unicel Architectural Corp. The inclusion of Unicel’s proficiency in glass and building envelope solutions will enable it to boost its product portfolio within the non-residential business. Both the acquired businesses have been incorporated into the Allegion Americas segment. 

Also, in March 2024, Allegion completed the acquisition of Spain-based Montajes Electronics Dorcas S.L. (Dorcas), which has been incorporated into the Allegion International segment. The inclusion of Dorcas’ expertise in electric strikes and lock solutions, coupled with its strong innovation capabilities, enabled ALLE to boost its security products portfolio. It also helped the company to expand its presence in lucrative end markets like healthcare and education. It also acquired Livingston, Scotland-based Boss Door Controls in February 2024, thereby expanding its U.K. business with a complementary portfolio and broader channel access. Boss Door Controls is part of the Allegion International segment.

Rewards to Shareholders: Allegion is committed to returning value to shareholders through share repurchases and dividends. Dividends paid out totaled $166.9 million in 2024, reflecting an increase of 5.2% year over year. In the same period, Allegion repurchased shares for $220 million. At the time of exiting the fourth quarter of 2024, the company was left to repurchase shares worth 240 million under its 2023-approved program. In February 2025, Allegion announced a 6% hike in its quarterly dividend rate, which is now 51 cents per share.

Other Stocks to Consider

Other top-ranked companies are discussed below.

RBC Bearings Incorporated RBC currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

RBC delivered a trailing four-quarter average earnings surprise of 4.9%. In the past 60 days, the Zacks Consensus Estimate for RBC’s fiscal 2025 earnings has increased 1.2%.

Enersys ENS presently sports a Zacks Rank of 1. The company delivered a trailing four-quarter average earnings surprise of 2.2%.

In the past 60 days, the consensus estimate for ENS’ fiscal 2025 earnings has increased 7.2%.

The Middleby Corporation MIDD presently carries a Zacks Rank of 2. MIDD delivered a trailing four-quarter average earnings surprise of 1.9%.

In the past 60 days, the consensus estimate for MIDD’s 2025 earnings has inched up 0.8%.

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This article originally published on Zacks Investment Research (zacks.com).

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