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Allegion PLC's stock is currently priced at $125.65, reflecting a significant drop of 4.19% from its previous close of $131.14. The company's recent earnings have shown a concerning trend with a Q1 earnings miss of $1.80 against the estimated $1.93, and a consistent underperformance in Q4 2025 as well. With a P/E ratio of 17.78 and a revenue growth rate of 8.87%, the stock appears overvalued given the current earnings outlook.
I recommend selling or avoiding Allegion PLC stock at this time due to its recent earnings misses and analyst downgrades.
If Allegion can reverse its earnings miss trend and achieve better-than-expected results in future quarters, analysts may upgrade their ratings, particularly given the strong analyst consensus of 3 Strong Buy and 8 Buy ratings. Furthermore, the company’s return on equity (ROE) of 32.08% suggests efficient profit generation, which could attract investor interest.
The recent downgrade by JP Morgan indicates a loss of confidence among financial analysts, which could lead to further stock price declines. Additionally, the disappointing earnings performance with two consecutive misses raises concerns about the company's ability to sustain its growth trajectory, especially given its relatively high P/E ratio of 17.78 compared to industry averages.
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Helm's AI rates ALLE as Bearish. I recommend selling or avoiding Allegion PLC stock at this time due to its recent earnings misses and analyst downgrades.
The recent downgrade by JP Morgan indicates a loss of confidence among financial analysts, which could lead to further stock price declines. Additionally, the disappointing earnings performance with two consecutive misses raises concerns about the company's ability to sustain its growth trajectory, especially given its relatively high P/E ratio of 17.78 compared to industry averages.
If Allegion can reverse its earnings miss trend and achieve better-than-expected results in future quarters, analysts may upgrade their ratings, particularly given the strong analyst consensus of 3 Strong Buy and 8 Buy ratings. Furthermore, the company’s return on equity (ROE) of 32.08% suggests efficient profit generation, which could attract investor interest.
Allegion PLC's stock is currently priced at $125.65, reflecting a significant drop of 4.19% from its previous close of $131.14. The company's recent earnings have shown a concerning trend with a Q1 earnings miss of $1.80 against the estimated $1.93, and a consistent underperformance in Q4 2025 as well. With a P/E ratio of 17.78 and a revenue growth rate of 8.87%, the stock appears overvalued given the current earnings outlook.
Allegion PLC's stock is currently priced at $125.65, reflecting a significant drop of 4.19% from its previous close of $131.14. The company's recent earnings have shown a concerning trend with a Q1 earnings miss of $1.80 against the estimated $1.93, and a consistent underperformance in Q4 2025 as well. With a P/E ratio of 17.78 and a revenue growth rate of 8.87%, the stock appears overvalued given the current earnings outlook. Our overall verdict is Bearish.
Helm's analysis is generated by an AI model from live market data. It identifies risk signals, opportunities, and key metrics based on current fundamentals, recent price action, and analyst consensus. It does not execute trades, issue certified investment advice, or predict future prices.
Not financial advice. Informational use only. AI-generated content may contain errors. Consult a licensed financial advisor before making investment decisions. Helm Terminal is not registered as an investment advisor.
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