What Makes Allegion Plc (ALLE) an Attractive Investment Bet?

Fiduciary Management Inc. (FMI), an independent money management firm, released its “FMI Large Cap Equity Strategy” fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. The investment philosophy of the firm is to invest in durable business franchises that are selling at a discount to their intrinsic value. In the fourth quarter, the strategy returned -3.92% (gross) and -4.03% (net) compared to 2.41% return for the S&P 500 Index. In addition, please check the fund’s top five holdings to know its best picks in 2024.

You are viewing: What Makes Allegion Plc (ALLE) an Attractive Investment Bet?

See more : Top 10 Investment Themes For 2025

FMI Large Cap Equity Strategy highlighted stocks like Allegion plc (NYSE:ALLE), in the fourth quarter 2024 investor letter. Allegion plc (NYSE:ALLE) offers mechanical and electronic security products and solutions. The one-month return of Allegion plc (NYSE:ALLE) was -8.22%, and its shares gained 5.37% of their value over the last 52 weeks. On January 10, 2025, Allegion plc (NYSE:ALLE) stock closed at $126.21 per share with a market capitalization of $10.97 billion.

FMI Large Cap Equity Strategy stated the following regarding Allegion plc (NYSE:ALLE) in its Q4 2024 investor letter:

“Allegion plc (NYSE:ALLE) is a leading global provider of security products and solutions with a particularly strong presence in the attractive US non-residential markets. While these markets are cyclical and many are currently weakening, the industry has grown reliably over time with the installed base of buildings and homes, rising desire for safety, security, and privacy, and increasing adoption of electronic products. The company’s sales also have a recurring revenue element as revenues from repair/replace and new construction markets are split roughly equally at ~50% each. Allegion’s trusted brands, large installed base, efficient manufacturing/service levels, technical/specifications expertise, and channel relationships built over decades make the company’s position in these markets very difficult to replicate. The company also has a strong management team, balance sheet, and capital allocation stance, with prospects for high-single-digit to low-double digit earnings growth at value creating ROIC. The stock is trading well below the market, which we view as attractive given its above-average business quality. We initiated a 2% position in December 2024.”

See more : Bridge Investment Group Sells Wheaton Senior Living for $79M

A team of employees in a laboratory setting, testing and creating revolutionary security products.

Allegion plc (NYSE:ALLE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held Allegion plc (NYSE:ALLE) at the end of the third quarter which was 25 in the previous quarter. Allegion plc’s (NYSE:ALLE) revenue for the third quarter increased by 5.4% year-over-year to $967.1 million. While we acknowledge the potential of Allegion plc (NYSE:ALLE) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

Story Continues