Tuesday, March 21, 2017

Lennox International Hits New 52-Week High on Solid '17 View

Shares of Lennox International Inc. LII reached a new 52-week high of $172.96 during its trading session on Mar 20. This apex improved upon the last 52-week high of $172.61 on Mar 16.

Post the release of fourth-quarter 2016 results on Feb 7, shares of the company yielded 7.02% return, outperforming the gain of 1.97% seen by the Zacks categorized Building Products – Air Conditioner and Heating industry.

On Mar 20, Lennox International closed its trading session at $171.65, yielding a year-to-date return of roughly 12.1%. The trading volume for the session was 0.15 million shares. Positive earnings estimate revisions for 2017 and 2018, along with an expected earnings growth rate of 18.8% for the next five years, indicate the stock’s potential for further price appreciation.

Growth Drivers

Lennox International’s financial performance has been impressive over the last four quarters, as evident from an average positive earnings surprise of 7.37%. In the fourth quarter, the company’s earnings of $1.50 per share surpassed the Zacks Consensus Estimate of $1.40 by 7.14%.

For 2017, Lennox International anticipates earnings from continuing operations to be within $7.55−$8.15 per share range, up 12.9% year over year at mid point. Total revenue will grow 3−7%. Also, the company remains committed toward making investments for increasing growth and profitability in the quarters ahead. It also plans to reward shareholders with dividend payments and share buybacks of $250 million in 2017.

Over the last 60 days, the Zacks Consensus Estimate for Lennox International increased 0.9% to $7.92 for 2017 and 0.9% to $8.87 for 2018. Earnings estimates represent year-over-year growth of 13.9% for 2017 and 12% for 2018.

Lennox International, Inc. Price and Consensus


Lennox International, Inc. Price and Consensus | Lennox International, Inc. Quote

Zacks Rank & Stocks to Consider

With a market capitalization of $7.4 billion, Lennox International currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the building products industry include AAON, Inc. AAON, Comfort Systems USA, Inc. FIX and Universal Forest Products, Inc. UFPI. All these stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

AAON, Inc.’s earnings estimates for 2018 have been revised upward over the last 60 days. Also, the company’s earnings are anticipated to grow 15% in the next five years.

Comfort Systems USA, Inc. has an average positive earnings surprise of 15.46%. Also, earnings estimates for 2017 have improved over the last 60 days.

Universal Forest Products, Inc. has an average positive earnings surprise of 5.41%. Also, its earnings estimates for 2017 and 2018 improved in the last 60 days.

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Zacks Investment Research

March 21, 2017 at 05:22PM

from Zacks Equity Research