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Analyst Blog

Shares of Lennox International Inc. (LII - Snapshot Report) hit a new 52-week high of $69.16 on Jul 12 and eventually closed at $68.52. The company currently has a market capitalization of $3.45 billion.

Year-to-date, share prices have recorded a healthy return of 26.7%. The company’s long-term estimated earnings per share growth rate is 19.3%. Average volume of shares traded over the last three months came in at approximately 413K.

In May 2013, Lennox International announced a quarterly dividend raise of 25% from 20 cents to 24 cents a share. Prior to this, in Sep 2012, the company announced an 11% increase in its quarterly dividend rate surging from 18 cents to 20 cents.

In March, Lennox hived off its Service Experts business, except its commercial service business — Lennox National Account Services (NAS), to enhance the company’s focus on productive areas.

Lennox is prospering in the growth markets due to the high demand for its products and services. The company’s costs saving initiatives are expected to lead to a margin improvement in the coming quarters. Lennox expects to achieve revenues of roughly $3.1 billion in 2013, with the cumulative average growth rate reaching 6% - 7% in 2015.

Lennox is expected to release its second-quarter 2013 results on Jul 22. The Zacks Consensus Estimate for the quarter is $1.19 per share reflecting a year-over-year growth of 23.96%.

Other Stocks to Consider

Lennox currently carries a Zacks Rank #2 (Buy). Other stocks to watch out for in the industry are Comfort Systems USA Inc. (FIX - Snapshot Report), Watsco Inc. (WSO - Analyst Report) and Eagle Materials Inc. (EXP - Snapshot Report). While Comfort Systems carries a Zacks Rank #1 (Strong Buy), both Watsco and Eagle Materials hold a Zacks Rank #2 (Buy) and are worth considering.

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