A Fresh Look at Lennox International’s (LII) Valuation Following Recent Sector Pullback

Lennox International (LII) has been drawing attention after recent market moves, as its stock has slipped a bit over the past month in line with broader industry shifts. Investors are keeping an eye on how these changes may shape upcoming results.

See our latest analysis for Lennox International.

Lennox International’s latest 30-day share price return of -19.08% underscores tougher sentiment in the sector lately, with momentum clearly cooling after a stretch of multi-year gains. Even so, the long-term story is compelling. The stock has still delivered a 72.3% total shareholder return over three years and 63.2% over five years, showing that patient holders have done very well despite recent pressure.

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With Lennox International’s shares now off their highs and trading nearly 30% below consensus analyst targets, the question for investors is whether pessimism has gone too far or if the market is simply looking ahead to slower growth.

Most Popular Narrative: 22.3% Undervalued

Lennox International is trading well below what the most widely followed narrative considers fair value, suggesting a significant disconnect with the market's last close price of $444.26. Investors seeking potential upside may find this gap especially compelling in today's uncertain environment.

Strategic partnerships with Samsung (mini splits/VRF with smart tech integration) and Ariston (heat pump water heaters) will expand Lennox's advanced, energy-efficient product offerings. This will enhance its access to segments benefiting from regulatory and consumer demand for sustainability, with significant revenue growth expected from 2026 and 2027 onward.

Read the complete narrative.

Curious how AI-powered tools and next-gen partnerships could turbocharge future margins? There is a key set of growth levers in play. Discover which ambitious projections underpin this undervalued rating and the catalysts that could flip the script on recent market pessimism. Find out what is driving bullish targets and the debate over Lennox's fair value.

Result: Fair Value of $572.13 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent supply chain disruptions and elevated input costs could limit margin improvement and disrupt the expected revenue and earnings trajectory for Lennox International.

Find out about the key risks to this Lennox International narrative.

Build Your Own Lennox International Narrative

If you see things differently or want to draw your own conclusions, you can craft a personalized analysis quickly and easily. Do it your way

A great starting point for your Lennox International research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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