Zacks Highlights Allegion, MSA Safety, ADT and Alarm.com Amid Security Industry Headwinds

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2▲0 ▼4Impact / 5
Summary · why it matters

Zacks Equity Research has identified Allegion, MSA Safety, ADT, and Alarm.com as security and safety stocks to watch despite persistent cost inflation and rising labor expenses that continue to pressure industry margins. The Zacks Security and Safety Services industry has underperformed the broader market over the past year, declining 11.1 percent while the S&P 500 gained 22.8 percent, and currently trades at a forward price-to-earnings multiple of 12.43, well below the S&P 500's 21.02. Alarm.com carries a Zacks Rank of 2, or Buy, while Allegion, ADT, and MSA Safety each hold a Zacks Rank of 3, or Hold. The industry's long-term debt-to-capital ratio stands at 0.60, significantly higher than the S&P 500's 0.27, reflecting heavy investment in innovation and product development.

Impact on assets 4

Consumer Discretionary▼
ADT Inc
ADT
▼ NegativeSupplyrelevance

Persistent cost inflation and rising labor expenses pressure industry margins, affecting ADT.

Industrials▼
Allegion PLC
ALLE
▼ NegativeSupplyrelevance

Persistent cost inflation and rising labor expenses pressure industry margins, affecting Allegion.

Artificial Intelligence▼
Alarm.com Holdings Inc
ALRM
▼ NegativeSupplyrelevance

Persistent cost inflation and rising labor expenses pressure industry margins, affecting Alarm.com.

Defense & Geopolitical Fragmentation▼
MSA Safety
MSA
▼ NegativeSupplyrelevance

Persistent cost inflation and rising labor expenses pressure industry margins, affecting MSA Safety.