ALLE Stock Analysis — Allegion
Sector: Industrials
AI Verdict
Allegion trades at 16.8x next year's earnings for 32.2% expected growth, which is cheap for the growth on offer, but with an RSI of 87.3, you're paying up for a stock that's likely due for a near-term pullback despite its defensible installed base.
Competitive Moat
Allegion specializes in security products like locks and access control systems, with a defensible position built on deep integration with building codes and legacy infrastructure. Its installed base and long-term service contracts create switching costs for commercial customers.
Summary
Allegion's forward P/E of 16.8x with 32.2% expected EPS growth makes it a rare value in industrials, but its RSI of 87.3 signals extreme overbought conditions.
Where It Stands
The stock is up just 3.19% over the past year, trades at 16.8x next year's earnings (below the 20x industrials median), but its RSI of 87.3 is deep into overbought territory.
Key Metrics
- RSI: 87.3 — Overbought
- Trailing P/E: 22.2x
- Forward P/E: 16.8x
- PEG Ratio: 0.69
- Earnings Growth: +0.3%
- Revenue Growth: +0.1%
- Market Cap: $14.4B
- Dividend Yield: 0.01%
- 1-Year Return: 3.19%
- 52-Week High: $183.11
- 52-Week Low: $125.00
Analyst Consensus
11 Buy · 7 Hold · 0 Sell (18 analysts)
Bull Case
With forward EPS growth forecast at 32.2% and a forward P/E of 16.8x, you're getting high growth at a discount to the sector median.
Bear Case
If the RSI of 87.3 reverts to a neutral 60, a technical pullback could easily erase the modest 3.19% annual gain and more.
Catalyst to Watch
Watch for quarterly earnings surprises—if Allegion delivers on 32.2% EPS growth, the low forward P/E could attract buyers after any RSI-driven correction.