ALLE Stock Analysis — Allegion
Sector: Industrials
AI Verdict
Allegion is cheap for the growth you're getting at 15.0x forward earnings and 19.4% EPS growth, and the moat of regulatory lock-in supports the case for a rebound from oversold conditions.
Competitive Moat
Allegion manufactures mechanical and electronic security products, including locks and access control systems, with a moat rooted in entrenched relationships with commercial building managers and regulatory compliance requirements. Its installed base and integration with building codes create high switching costs for customers.
Summary
Allegion's stock is deeply oversold with an RSI of 18.6, signaling a potential rebound setup.
Where It Stands
The stock is down -8.24% over the past year, trades at 15.0x next year's earnings versus the industrials median of 20x, and its RSI of 18.6 indicates extreme oversold territory.
Key Metrics
- RSI: 18.6 — Oversold
- Trailing P/E: 17.9x
- Forward P/E: 15.0x
- PEG Ratio: 0.94
- Earnings Growth: +0.2%
- Revenue Growth: +0.1%
- Market Cap: $11.3B
- Dividend Yield: 0.02%
- 1-Year Return: -8.24%
- 52-Week High: $183.11
- 52-Week Low: $130.07
Analyst Consensus
11 Buy · 9 Hold · 0 Sell (20 analysts)
Bull Case
With forward EPS growth expected at 19.4% and a forward P/E of just 15.0x, you're paying a below-average price for above-average earnings momentum.
Bear Case
If the P/E multiple reverts to 12x (the energy sector median), shares could lose another 20% from here, especially if the RSI bounce fails to materialize.
Catalyst to Watch
Watch for upcoming earnings guidance—confirmation of double-digit EPS growth could trigger a sharp reversal from oversold levels.