Lennox International saw its IBD SmartSelect Composite Rating jump to 96 Wednesday, up from 94 the day before.
The revised score means the stock currently tops 96% of all other stocks in terms of key performance metrics and technical strength. Winning stocks often have a 95 or higher score in the early stages of a new price run, so that's an important benchmark to look for when looking for the best stocks to buy and watch.
Lennox International is currently forming a consolidation, with a 682.50 buy point. Look for the stock to break out in volume at least 40% higher than normal. Keep in mind that it's a later-stage base, which makes it a riskier entry point.
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The stock sports a 97 EPS Rating, meaning its recent quarterly and longer-term annual earnings growth tops 97% of all stocks.
Its Accumulation/Distribution Rating of B shows moderate buying by institutional investors over the last 13 weeks.
The company posted a 54% earnings-per-share gain for Q4. It has now posted accelerating EPS gains for two consecutive quarters. Sales growth climbed 16%, up from 10% in the prior report. The company has now posted increasing growth in each of the last three quarters.
Lennox International earns the No. 1 rank among its peers in the Building-A/C & Heating Products industry group. Comfort Systems USA and Trane Technologies are also among the group's highest-rated stocks.
