Spring is in the air, or it will be soon depending on where you live. Heating and air conditioning systems company Lennox International got a head-start on the market recovery that began in November. Lennox stock started rising last June as people hunkered down for winter and checked and upgraded their heating systems.
The all-seasons company could continue upward as the season turns warm and air conditioning comes to mind. Reflecting its gains, and promise, the Relative Strength (RS) Rating for Lennox stock jumped into a higher percentile Tuesday, as it got a lift from 62 to 75.
Lennox Stock Performance In Top Quartile
The upgraded 75 RS Rating puts Lennox stock among the top 25% for price performance. It's a good rating but not yet outstanding. Market research reveals that the market's best stocks to buy and watch typically have an 80 or higher RS Rating as they launch their biggest price moves. See if Lennox International can continue to rebound and hit that benchmark.
Lennox stock's Composite Rating is 70, its Earnings Per Share Rating is 89 and its Accumulation/Distribution Rating is a healthy B-. The A/D Rating gauges the amount of buying by ETFs, mutual funds and other institutions on an A+ to E scale, with A+ outstanding and E miserable.
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Lennox stock climbed more than 50% from a mid-June low 182.85 to a 278.84 high on Feb. 2. It broke out earlier, but is now trading about 4% below the prior 275.95 entry from a cup without handle as it forms a handle. Lennox closed down fractionally Tuesday.
Stock watchlist candidate Lennox has dipped below its prior buy price but hasn't triggered a sell signal. One thing to keep in mind is that its most recent consolidation is a later-stage base. Those can be a springboard to gains but they are riskier than early stage bases.
Lennox Changed As Seasons Changed
There was a marked shift in the company's financial results from early 2022 to the back half. In the first two quarters Lennox reported single-digit EPS growth, 4% and 9%, respectively. In the second half of the year EPS grew 21% and 12%. That pattern was similar with sales growth. On Jan. 31 Lennox reported 12% fourth quarter EPS growth to $2.63 on 13% higher revenue to $1.09 billion.
Lennox stock earns the No. 7 rank among its peers in the Building-A/C & Heating Products industry group. Thermon Group Holdings and AAON are among the group's highest-rated stocks.
IBD's proprietary Relative Strength Rating identifies technical performance by using a 1 (worst) to 99 (best) score that indicates how a stock's price action over the trailing 52 weeks compares to the rest of the market.
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