Lennox International Stock Plummets -7.5% With 7-Day Losing Streak

LII: Lennox International logo
LII
Lennox International

Lennox International (LII) stock hit day 7 of a continuous streak of days with losses, with cumulative losses over this period amounting to a -7.5% return. The company has lost about $1.3 Bil in value over the last 7 days, with its current market capitalization at about $16 Bil. The stock remains 24.7% below its value at the end of 2024. This compares with year-to-date returns of 12.5% for the S&P 500.

Lennox International’s recent streak faced headwinds from softening residential HVAC demand, with Q3 revenue missing estimates at $1.43 billion and FY2025 guidance trimmed. Analyst price target cuts amplified investor caution amidst declining industry shipments.

What is the point? Sustained weakness can be more than noise. It often signals shifting sentiment or deeper concerns. A multi-day losing streak may warn of further downside, or present an opportunity to buy if fundamentals are intact. Our take: There are a few things to fear in LII stock given its overall Moderate operating performance and financial condition. This is aligned with the stock’s Moderate valuation because of which we think it is Fairly Priced (see Buy or Sell LII).

For quick background, LII provides heating, ventilation, air conditioning, and refrigeration products, including furnaces, air conditioners, heat pumps, and refrigeration solutions for residential and commercial markets.

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Comparing LII Stock Returns With The S&P 500

The following table summarizes the return for LII stock vs. the S&P 500 index over different periods, including the current streak:
 

Return Period LII S&P 500
1D -0.9% -0.8%
7D (Current Streak) -7.5% -1.7%
1M (21D) -14.8% -1.7%
3M (63D) -22.5% 3.5%
YTD 2025 -24.7% 12.5%
2024 37.3% 23.3%
2023 89.5% 24.2%
2022 -24.9% -19.4%

 
Take a look at what history tells you about whether past dips like this have been buying opportunities or traps: LII Dip Buyer Analysis.

Gains and Losses Streaks: S&P 500 Constituents

There are currently 19 S&P constituents with 3 days or more of consecutive gains and 132 constituents with 3 days or more of consecutive losses.
 

Consecutive Days # of Gainers # of Losers
3D 10 28
4D 4 70
5D 0 23
6D 2 5
7D or more 3 6
Total >=3 D 19 132

 
 
Key Financials for Lennox International (LII)

Last 2 Fiscal Years:

Metric FY2023 FY2024
Revenues $5.0 Bil $5.3 Bil
Operating Income $843.9 Mil $1.0 Bil
Net Income $590.1 Mil $806.9 Mil

Last 2 Fiscal Quarters:

Metric 2025 FQ2 2025 FQ3
Revenues $1.5 Bil $1.4 Bil
Operating Income $349.2 Mil $307.0 Mil
Net Income $277.6 Mil $245.8 Mil

 
The losing streak LII stock is currently on doesn’t inspire much confidence among investors. In contrast, Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.