Lincoln Electric hits 20-day low amid small-cap stock focus
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 25 2026
0mins
Should l Buy LECO?
Source: NASDAQ.COM
Lincoln Electric Holdings Inc. experienced a decline of 4.62% as it hit a 20-day low.
This movement comes amid a broader market shift where investors are increasingly focusing on small-company stocks, moving away from tech-heavy investments as interest in artificial intelligence wanes. The Nasdaq-100 and S&P 500 are both down significantly, indicating a sector rotation away from larger tech stocks.
The implications of this trend suggest that Lincoln Electric may face continued pressure as investor sentiment shifts towards smaller companies, potentially impacting its future performance.
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Analyst Views on LECO
Wall Street analysts forecast LECO stock price to fall
7 Analyst Rating
4 Buy
2 Hold
1 Sell
Moderate Buy
Current: 274.950
Low
252.00
Averages
269.25
High
285.00
Current: 274.950
Low
252.00
Averages
269.25
High
285.00
About LECO
Lincoln Electric Holdings, Inc. is a manufacturer of welding, cutting and brazing products. The Company’s segments include Americas Welding, International Welding, and the Harris Products Group. The Americas Welding segment includes welding operations in North and South America. The International Welding segment includes welding operations in Europe, Africa, Asia, and Australia. The Harris Products Group includes the Company’s global oxyfuel cutting, soldering and brazing businesses and its retail business in the United States. Its products include arc welding, brazing and soldering filler metals (consumables), arc welding equipment, plasma and oxyfuel cutting systems, wire feeding systems, fume control equipment, welding accessories, specialty gas regulators, and education solutions; and a comprehensive portfolio of automated solutions for joining, cutting, material handling, module assembly, and end of line testing.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
The Small-Cap Comeback Could Be Beginning: Here Are Some Funds and Stocks to Consider.
- Small-company stocks gaining attention: Investors are increasingly focusing on small-company stocks as interest in artificial intelligence wanes.
- Market dynamics shifting: The shift in investor sentiment indicates a broader change in market dynamics, moving away from tech-heavy investments.
- Potential for growth: Small-company stocks are seen as having significant growth potential, attracting more capital as investors seek new opportunities.
- Economic implications: This trend may reflect changing economic conditions and investor strategies in response to market fluctuations.
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- Sector Performance Comparison: The energy and materials sectors have surged over 23% and 15%, respectively, while consumer staples have rallied over 14%, contrasting sharply with the S&P 500's slight gains, highlighting the robust performance of heavy asset industries against struggling tech stocks.
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- Earnings Beat: Lincoln Electric reported Q4 earnings of $2.65 per share, surpassing the analyst consensus estimate of $2.54, indicating strong profitability despite mixed overall sales performance.
- Sales Miss: The company posted quarterly sales of $1.079 billion, falling short of the analyst consensus estimate of $1.099 billion, reflecting potential fluctuations in market demand that may have impacted revenue growth.
- Stock Price Increase: Lincoln Electric shares rose 0.3% to $296.95 on Friday, suggesting market recognition of the company's profitability, even as sales figures did not meet expectations.
- Analyst Target Adjustments: Keybanc analyst Steve Barger maintained an Overweight rating and raised the price target from $280 to $340, while Stifel analyst Nathan Jones kept a Hold rating and increased the target from $253 to $300, indicating analysts' confidence in the company's future performance.
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- Performance Growth: Lincoln Electric reported a 6% increase in sales to $4.2 billion for 2025, with CEO Steven Hedlund attributing this growth primarily to acquisitions and price increases, reflecting the company's strong market performance.
- Cost Management Success: The company achieved $31 million in permanent savings through its savings programs, with CFO Gabriel Bruno noting a 5.5% increase in Q4 sales to $1.079 billion, despite a 6.4% decline in volumes, indicating solid cash flow generation.
- New Strategy Launch: Management unveiled the RISE strategy aimed at enhancing global organizational efficiency and agility through center-led functions, projecting a high single-digit to low double-digit sales growth rate by 2030.
- Future Outlook: The company anticipates a mid-single-digit sales growth rate for 2026, emphasizing that automation and acquisitions will be key growth drivers while maintaining strict capital expenditure management.
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Lincoln Electric Reports Decline in Net Income Despite Sales Growth
- Net Income Decline: Lincoln Electric reported a net income of $136.022 million for the three months ending December 31, 2025, translating to $2.45 per share, down from $140.229 million or $2.47 per share a year earlier, primarily due to increased income tax and interest expenses.
- Sales Growth: The company achieved sales of $1.078 billion, up from $1.022 billion in the previous year, reflecting benefits from acquisitions and favorable foreign exchange rates, indicating strong market demand.
- Operating Income Increase: Operating income rose to $184.340 million compared to $177.017 million in 2024, showcasing the company's ability to enhance profitability through operational efficiencies.
- Rising Tax and Interest Expenses: Income tax expenses increased to $36.639 million from $26.824 million last year, while interest expenses climbed to $13.167 million from $11.372 million, which negatively impacted overall profitability.
See More
Lincoln Electric Q4 Earnings Beat Expectations
- Earnings Beat: Lincoln Electric reported a Q4 non-GAAP EPS of $2.65, exceeding expectations by $0.11, indicating the company's consistent profitability amidst market fluctuations.
- Revenue Miss: The revenue of $1.08 billion, while up 5.9% year-over-year, fell short of expectations by $20 million, highlighting potential weaknesses in market demand and increased competitive pressures.
- Negative Stock Reaction: Following the earnings report, Lincoln Electric's shares dropped by 1.5%, reflecting investor disappointment over the revenue miss, which could dampen short-term market confidence.
- Rating Downgrade Impact: Analysts downgraded Lincoln Electric's rating, suggesting that while the fundamentals remain strong, the lack of compelling growth may lead investors to reassess their strategies regarding the stock.
See More
The Small-Cap Comeback Could Be Beginning: Here Are Some Funds and Stocks to Consider.
- Small-company stocks gaining attention: Investors are increasingly focusing on small-company stocks as interest in artificial intelligence wanes.
- Market dynamics shifting: The shift in investor sentiment indicates a broader change in market dynamics, moving away from tech-heavy investments.
- Potential for growth: Small-company stocks are seen as having significant growth potential, attracting more capital as investors seek new opportunities.
- Economic implications: This trend may reflect changing economic conditions and investor strategies in response to market fluctuations.
See More
Wall Street Revives Heavy Asset Investment Strategy
- HALO Investment Concept: Investors on Wall Street are increasingly favoring companies with heavy assets like grids, pipelines, and heavy machinery, believing they are less likely to be replaced by AI; Josh Brown noted that these stocks have performed well this year, facing risks but potentially benefiting from AI advancements.
- Sector Performance Comparison: The energy and materials sectors have surged over 23% and 15%, respectively, while consumer staples have rallied over 14%, contrasting sharply with the S&P 500's slight gains, highlighting the robust performance of heavy asset industries against struggling tech stocks.
- Market Response and Strategy: A report from Barclays' trading desk indicated that HALO stocks have benefited from a
See More
Lincoln Electric Reports Mixed Q4 Results with Analyst Upgrades
- Earnings Beat: Lincoln Electric reported Q4 earnings of $2.65 per share, surpassing the analyst consensus estimate of $2.54, indicating strong profitability despite mixed overall sales performance.
- Sales Miss: The company posted quarterly sales of $1.079 billion, falling short of the analyst consensus estimate of $1.099 billion, reflecting potential fluctuations in market demand that may have impacted revenue growth.
- Stock Price Increase: Lincoln Electric shares rose 0.3% to $296.95 on Friday, suggesting market recognition of the company's profitability, even as sales figures did not meet expectations.
- Analyst Target Adjustments: Keybanc analyst Steve Barger maintained an Overweight rating and raised the price target from $280 to $340, while Stifel analyst Nathan Jones kept a Hold rating and increased the target from $253 to $300, indicating analysts' confidence in the company's future performance.
See More
Lincoln Electric Reports Record Q4 2025 Performance with New RISE Strategy
- Performance Growth: Lincoln Electric reported a 6% increase in sales to $4.2 billion for 2025, with CEO Steven Hedlund attributing this growth primarily to acquisitions and price increases, reflecting the company's strong market performance.
- Cost Management Success: The company achieved $31 million in permanent savings through its savings programs, with CFO Gabriel Bruno noting a 5.5% increase in Q4 sales to $1.079 billion, despite a 6.4% decline in volumes, indicating solid cash flow generation.
- New Strategy Launch: Management unveiled the RISE strategy aimed at enhancing global organizational efficiency and agility through center-led functions, projecting a high single-digit to low double-digit sales growth rate by 2030.
- Future Outlook: The company anticipates a mid-single-digit sales growth rate for 2026, emphasizing that automation and acquisitions will be key growth drivers while maintaining strict capital expenditure management.
See More
Lincoln Electric Reports Decline in Net Income Despite Sales Growth
- Net Income Decline: Lincoln Electric reported a net income of $136.022 million for the three months ending December 31, 2025, translating to $2.45 per share, down from $140.229 million or $2.47 per share a year earlier, primarily due to increased income tax and interest expenses.
- Sales Growth: The company achieved sales of $1.078 billion, up from $1.022 billion in the previous year, reflecting benefits from acquisitions and favorable foreign exchange rates, indicating strong market demand.
- Operating Income Increase: Operating income rose to $184.340 million compared to $177.017 million in 2024, showcasing the company's ability to enhance profitability through operational efficiencies.
- Rising Tax and Interest Expenses: Income tax expenses increased to $36.639 million from $26.824 million last year, while interest expenses climbed to $13.167 million from $11.372 million, which negatively impacted overall profitability.
See More
Lincoln Electric Q4 Earnings Beat Expectations
- Earnings Beat: Lincoln Electric reported a Q4 non-GAAP EPS of $2.65, exceeding expectations by $0.11, indicating the company's consistent profitability amidst market fluctuations.
- Revenue Miss: The revenue of $1.08 billion, while up 5.9% year-over-year, fell short of expectations by $20 million, highlighting potential weaknesses in market demand and increased competitive pressures.
- Negative Stock Reaction: Following the earnings report, Lincoln Electric's shares dropped by 1.5%, reflecting investor disappointment over the revenue miss, which could dampen short-term market confidence.
- Rating Downgrade Impact: Analysts downgraded Lincoln Electric's rating, suggesting that while the fundamentals remain strong, the lack of compelling growth may lead investors to reassess their strategies regarding the stock.
See More
