Trade-Ideas LLC identified

Lennox International

(

LII

) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Lennox International as such a stock due to the following factors:

  • LII has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $66.2 million.
  • LII has traded 57.02989999999999781721271574497222900390625 options contracts today.
  • LII is making at least a new 3-day high.
  • LII has a PE ratio of 31.
  • LII is mentioned 1.32 times per day on StockTwits.
  • LII has not yet been mentioned on StockTwits today.
  • LII is currently in the upper 20% of its 1-year range.
  • LII is in the upper 35% of its 20-day range.
  • LII is in the upper 45% of its 5-day range.
  • LII is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on LII:

Lennox International Inc., through its subsidiaries, designs, manufactures, and markets climate control products for the heating, ventilation, air conditioning, and refrigeration markets. The stock currently has a dividend yield of 1.1%. LII has a PE ratio of 31. Currently there are 7 analysts that rate Lennox International a buy, no analysts rate it a sell, and 11 rate it a hold.

The average volume for Lennox International has been 441,600 shares per day over the past 30 days. Lennox International has a market cap of $5.7 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.22 and a short float of 4.3% with 5.73 days to cover. Shares are up 3% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Lennox International as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, solid stock price performance and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 5.8%. Since the same quarter one year prior, revenues slightly increased by 2.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has increased to $224.30 million or 39.05% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 18.50%.
  • LENNOX INTERNATIONAL INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, LENNOX INTERNATIONAL INC reported lower earnings of $4.11 versus $4.28 in the prior year. This year, the market expects an improvement in earnings ($6.31 versus $4.11).
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Building Products industry and the overall market, LENNOX INTERNATIONAL INC's return on equity significantly exceeds that of both the industry average and the S&P 500.

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