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Lennox (LII) Hits New 52-Week High on Bright Prospects

Shares of Lennox International, Inc. LII reached a new 52-week high of $140.68 during the trading session on Apr 11, 2016. This improved upon the last 52-week high of $140.29 hit on Apr 8.

Lennox International ended the session at $139.32, reflecting a solid year-to-date return of 26.8%. The trading volume for the session was 0.41 million shares. Revision in earnings estimates and an expected earnings growth rate of 19.5% for the next 5 years indicate further upward potential for this building products company.

Growth Drivers

Market sentiments have been favoring Lennox International, with share price up 11.8%, since the start of 2016. A couple of events drove the upside, including impressive results for fourth-quarter 2015 and an approval of a $200 million accelerated share buyback program.

Lennox International hopes to keep up this momentum, expanding its business organically as well as rewarding its shareholders with dividend payments and share buybacks. Adjusted earnings are predicted to come in within $6.10−$6.60 per share, up from $5.14 per share in 2015.  

The company is slated to release first-quarter 2016 results on Apr 18, 2016 before the market opens. With a Zacks Rank #3 (Hold) and an  Earnings ESP of +9.09% for first-quarter 2016, the company is likely to beat earnings estimates in the quarter.

Estimate Revisions Show Potency

Over the last 30 days, the Zacks Consensus Estimate for Lennox International inched up 0.2% to $6.33 per share for 2016; while the same grew 0.1% to $7.24 for 2017. This reflects year-over-year growth of 23.2% in 2016 and 14.3% in 2017.

Lennox International currently has a market capitalization of $6.1 billion. A couple of stocks in the building products industry, currently sporting a Zacks Rank #1 (Strong Buy) are AAON Inc. AAON and Beacon Roofing Supply, Inc. BECN, while another stock, Watsco Inc. WSO, carries a Zacks Rank #2 (Buy).

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WATSCO INC (WSO): Free Stock Analysis Report
 
LENNOX INTL INC (LII): Free Stock Analysis Report
 
AAON INC (AAON): Free Stock Analysis Report
 
BEACON ROOFING (BECN): Free Stock Analysis Report
 
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