LII Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Loading...
Lennox International Inc (LII) is not a strong buy at the moment for a beginner investor with a long-term focus. The company's weak financial performance in Q4 2025, declining revenue, net income, and EPS, along with mixed analyst ratings and reduced price targets, suggest caution. While hedge funds are buying, the lack of recent positive news, no significant insider trading, and neutral technical indicators do not indicate a compelling entry point. The options data also shows a slightly bearish sentiment with an Open Interest Put-Call Ratio of 1.22. Given the investor's profile and the current data, holding off on buying is recommended.
The MACD is positive and expanding, indicating bullish momentum. However, the RSI is neutral at 77.68, and moving averages are converging, suggesting no clear trend. The stock is trading near its resistance level (R1: 563.862), which could limit further upside in the short term.
Hedge funds are significantly increasing their positions in LII, with a 2261.11% increase in buying over the last quarter. Additionally, the MACD indicates bullish momentum.
The company's Q4 2025 financials showed a significant decline in revenue (-11.15% YoY), net income (-27.92% YoY), and EPS (-26.45% YoY). Analysts have lowered price targets across the board, citing weak residential markets and reduced margins. The options data shows a bearish sentiment with a higher Open Interest Put-Call Ratio (1.22).
In Q4 2025, Lennox International reported a revenue drop of -11.15% YoY to $1.195 billion. Net income fell -27.92% YoY to $142.5 million, and EPS declined -26.45% YoY to $4.06. Gross margin also decreased to 32.58%, down -3.75% YoY, reflecting weaker operational performance.
Analyst sentiment is mixed to negative. While some firms maintain Buy or Overweight ratings, most have lowered price targets significantly. Morgan Stanley sees material earnings downside into 2026, and other firms highlight weak residential markets and lower margins. The average price target has been reduced, with targets ranging from $450 to $667.
