ADT IncPersistent cost inflation and rising labor expenses pressure industry margins, affecting ADT.
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.
ADT IncPersistent cost inflation and rising labor expenses pressure industry margins, affecting ADT.
Allegion PLCPersistent cost inflation and rising labor expenses pressure industry margins, affecting Allegion.
Alarm.com Holdings IncPersistent cost inflation and rising labor expenses pressure industry margins, affecting Alarm.com.
MSA SafetyPersistent cost inflation and rising labor expenses pressure industry margins, affecting MSA Safety.