Lennox International Stock Testing Price Floor – Buy Now?
Lennox International (LII) stock should be on your watchlist. Here is why – it is currently trading in the support zone ($468.42 – $517.72), levels from which it has bounced meaningfully before. In the last 10 years, Lennox International stock received buying interest at this level 4 times and subsequently went on to generate 16.4% in average peak returns.
| Peak Return | Days to Peak Return | |
|---|---|---|
| 6/12/2024 | 10.9% | 79 |
| 9/6/2024 | 22.6% | 80 |
| 4/9/2025 | 8.2% | 37 |
| 6/17/2025 | 23.9% | 37 |
But is the price action enough alone? It certainly helps if the fundamentals check out. For LII Read Buy or Sell LII Stock to see how convincing this buy opportunity might be.
Single stock can be risky, but there is a huge value to a broader diversified approach we take with Trefis High Quality Portfolio. Let us ask you this: Over the last 5 years, which index do you think the Trefis High Quality Portfolio outperformed – the S&P 500, S&P 1500 Equal Weighted, or both? The answer might surprise you. See how our advisory framework helps stack the odds in your favor.
Here are some quick data points for Lennox International that should help decision:
- Revenue Growth: 3.8% LTM and 5.2% last 3 year average.
- Cash Generation: Nearly 10.0% free cash flow margin and 19.9% operating margin LTM.
- Recent Revenue Shocks: The minimum annual revenue growth in last 3 years for LII was 4.6%.
- Valuation: LII stock trades at a PE multiple of 20.6
- Opportunity vs S&P: Compared to S&P, you get lower valuation, lower revenue growth, and better operating margins
For quick background, Lennox International provides heating, ventilation, air conditioning, and refrigeration products, including furnaces, air conditioners, heat pumps, and refrigeration solutions for residential and commercial markets.
| LII | S&P Median | |
|---|---|---|
| Sector | Industrials | – |
| Industry | Building Products | – |
| PE Ratio | 20.6 | 24.2 |
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| LTM* Revenue Growth | 3.8% | 5.1% |
| 3Y Average Annual Revenue Growth | 5.2% | 5.3% |
| Min Annual Revenue Growth Last 3Y | 4.6% | -0.1% |
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| LTM* Operating Margin | 19.9% | 18.6% |
| 3Y Average Operating Margin | 18.3% | 17.8% |
| LTM* Free Cash Flow Margin | 10.0% | 13.1% |
*LTM: Last Twelve Months
What Is Stock-Specific Risk If The Market Crashes?
That said, LII isn’t immune to big sell-offs. It plunged about 63% in the Dot-Com Bubble and dropped 52% during the Global Financial Crisis. The Inflation Shock took it down nearly 47%, while the Covid Pandemic and 2018 Correction both caused dips north of 20%. Solid fundamentals matter, but when the market turns, LII has shown it can still take serious hits.
But the risk is not limited to major market crashes. Stocks fall even when markets are in good shape – think events like earnings, business updates, outlook changes. Read LII Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.
The 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.