Subdued Growth No Barrier To Allegion plc’s (NYSE:ALLE) Price
When close to half the companies in the United States have price-to-earnings ratios (or “P/E’s”) below 19x, you may consider Allegion plc (NYSE:ALLE) as a stock to potentially avoid with its 23.6x P/E ratio. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the elevated P/E.
Recent times have been advantageous for Allegion as its earnings have been rising faster than most other companies. The P/E is probably high because investors think this strong earnings performance will continue. If not, then existing shareholders might be a little nervous about the viability of the share…
