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 $49.7 million.
  • LII has traded 146.104999999999989768184605054557323455810546875 options contracts today.
  • LII is making at least a new 3-day high.
  • LII has a PE ratio of 25.
  • LII is mentioned 2.00 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. designs, manufactures, and markets a range of products for the heating, ventilation, air conditioning, and refrigeration markets. The company operates in three segments: Residential Heating & Cooling, Commercial Heating & Cooling, and Refrigeration. The stock currently has a dividend yield of 1.3%. LII has a PE ratio of 25. Currently there are 6 analysts that rate Lennox International a buy, no analysts rate it a sell, and 10 rate it a hold.

The average volume for Lennox International has been 393,000 shares per day over the past 30 days. Lennox International has a market cap of $5.9 billion and is part of the industrial goods sector and industrial industry. Shares are up 9.1% year-to-date as of the close of trading on Wednesday.

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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 solid stock price performance, increase in net income, revenue growth, good cash flow from operations and growth in earnings per share. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:

  • 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. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Building Products industry average. The net income increased by 79.1% when compared to the same quarter one year prior, rising from $13.90 million to $24.90 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 10.0%. Since the same quarter one year prior, revenues slightly increased by 4.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • LENNOX INTERNATIONAL INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in 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 ($6.60 versus $4.11).
  • Net operating cash flow has slightly increased to -$113.40 million or 7.20% when compared to the same quarter last year. Despite an increase in cash flow, LENNOX INTERNATIONAL INC's cash flow growth rate is still lower than the industry average growth rate of 49.14%.

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