With a market cap of $21.9 billion, Lennox International Inc. (LII) is a global leader in climate control solutions. The Richardson, Texas-based company designs, manufactures and markets a diverse range of heating, ventilation, air conditioning, and refrigeration (HVACR) products for residential and commercial markets.
Companies valued at $10 billion or more are generally considered "large-cap" stocks and Lennox International fits this criterion perfectly. Its products are sold under well-known brands like Lennox, Armstrong Air, Heatcraft, and Bohn, catering to various efficiency levels and price points. Lennox serves customers worldwide through direct sales, distributors, and company-owned stores, offering innovative solutions for comfort and refrigeration needs.
Shares of the heating and air-conditioning equipment maker are trading 10% below its 52-week high of $682.50, recorded in November. The company has risen 1.6% over the past three months, outperforming the broader iShares U.S. Home Construction ETF’s (ITB) 18.7% decline over the same time frame.
In the longer term, LII stock is up 14.8% over the past six months, outpacing ITB’s 2.2% rise. Moreover, shares of LII have surged 37.2% over the past 52 weeks, compared to ITB’s 1.6% gain over the same time frame.
To confirm its bullish trend, LII has been trading above its 50-day and 200-day moving averages since last year despite recent fluctuations.
Shares of Lennox rose 2.6% on Oct. 23 due to the company’s strong Q3 2024 financial performance, which exceeded Wall Street expectations. The company reported record revenue of $1.5 billion, a 15% increase in core revenue, and adjusted EPS of $6.68, up 24% year-over-year, surpassing analysts’ estimates. Additionally, The company raised its full-year guidance, forecasting higher revenue growth of 10% and EPS between $20.75 and $21. Additionally, management highlighted successful milestones such as the operationalization of its Samsung joint venture and the integration of AES ahead of schedule, further boosting investor sentiment.
LII’s outperformance is more evident than that of its rival, Ingersoll Rand Inc. (IR), which gained 17% over the past 52 weeks and has experienced a marginal dip over the past six months.
Despite LII outpacing its industry peers, the stock has a consensus rating of “Hold” from 17 analysts in coverage. As of writing, the stock is trading slightly below the mean price target of $620.21.
