Lennox International Inc. (LII), headquartered in Richardson, Texas, designs, manufactures, and markets products for the heating, ventilation, air conditioning, and refrigeration markets. Valued at $18.1 billion by market cap, the company sells its products and services through direct sales, distributors, and company-owned parts and supplies stores.
Shares of this leader in energy-efficient climate-control solutions have underperformed the broader market over the past year. LII has declined 14.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 26.6%. In 2026, LII’s stock is up 4.7%, compared to the SPX’s 8.1% rise on a YTD basis.
Narrowing the focus, LII’s underperformance is also apparent compared to the State Street Industrial Select Sector SPDR ETF (XLI). The exchange-traded fund has gained about 24.3% over the past year. Moreover, the ETF’s 12.4% gains on a YTD basis outshine the stock’s single-digit returns over the same time frame.
On Apr. 29, LII shares closed up by 4.5% after reporting its Q1 results. The EPS of $3.35 topped Wall Street expectations of $3.16. The company’s revenue was $1.14 billion, topping Wall Street forecasts of $1.07 billion. LII expects full-year EPS to be $23.50 to $25.
For the current fiscal year, ending in December, analysts expect LII’s EPS to grow 4.8% to $24.28 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing the forecast on another occasion.
Among the 20 analysts covering LII stock, the consensus is a “Moderate Buy.” That’s based on seven “Strong Buy” ratings, 11 “Holds,” one “Moderate Sell,” and one “Strong Sell.”
This configuration is more bullish than a month ago, with six analysts suggesting a “Strong Buy.”
On May 4, JPMorgan Chase & Co. (JPM) analyst Patrick Baumann maintained a “Sell” rating on LII and set a price target of $522, implying a potential upside of 2.6% from current levels.
The mean price target of $564.67 represents an 11% premium to LII’s current price levels. The Street-high price target of $650 suggests an upside potential of 27.8%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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