Trade-Ideas LLC identified

Allegion

(

ALLE

) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Allegion as such a stock due to the following factors:

  • ALLE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $39.1 million.
  • ALLE has traded 44.02989999999999781721271574497222900390625 options contracts today.
  • ALLE is making at least a new 3-day high.
  • ALLE has a PE ratio of 54.
  • ALLE is mentioned 0.77 times per day on StockTwits.
  • ALLE has not yet been mentioned on StockTwits today.
  • ALLE is currently in the upper 20% of its 1-year range.
  • ALLE is in the upper 35% of its 20-day range.
  • ALLE is in the upper 45% of its 5-day range.
  • ALLE is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on ALLE:

Allegion Public Limited Company manufactures and sells mechanical and electronic security products and solutions worldwide. The stock currently has a dividend yield of 0.6%. ALLE has a PE ratio of 54. Currently there are 5 analysts that rate Allegion a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Allegion has been 782,900 shares per day over the past 30 days. Allegion has a market cap of $6.3 billion and is part of the services sector and diversified services industry. Shares are up 19.6% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Allegion as a

hold

. The company's strengths can be seen in multiple areas, such as its notable return on equity, expanding profit margins and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and premium valuation.

Highlights from the ratings report include:

  • Compared to other companies in the Building Products industry and the overall market, ALLEGION PLC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • 46.43% is the gross profit margin for ALLEGION PLC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -5.01% is in-line with the industry average.
  • ALLEGION PLC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ALLEGION PLC increased its bottom line by earning $1.93 versus $0.12 in the prior year. This year, the market expects an improvement in earnings ($2.88 versus $1.93).
  • Net operating cash flow has decreased to $92.30 million or 14.69% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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