Are Wall Street Analysts Bullish on Lennox International Stock?

Headquartered in Richardson, Texas, Lennox International Inc. (LII) is a climate-control solutions company founded in 1895. The company designs, manufactures, and markets heating, ventilation, air conditioning, and refrigeration (HVACR) systems for residential and commercial customers across North America and international markets. Its offerings include furnaces, air conditioners, heat pumps, indoor air quality equipment, and commercial refrigeration systems. With a market capitalization of approximately $11.9 billion, Lennox has built a long-standing presence in the climate-control industry.

However, Lennox has had a difficult run on Wall Street, with investors taking a decidedly cautious stance toward the stock. Shares of this leading climate-control solutions company have shed 25.3% over the past 52 weeks, a sharp contrast to the S&P 500 Index’s ($SPX) 11.6% surge. The weakness has carried into 2026, with LII down 26.7% on a year-to-date (YTD) basis, even as the broader index has gained 9.8%.

Narrowing the focus, the stock's performance has been weak when compared to the industry peers. The iShares U.S. Home Construction ETF (ITB) has slipped 3.8% over the past year and down 2.3% in 2026, making LII’s decline considerably steeper.

The pressure on Lennox’s stock largely comes down to a slowdown in its residential HVAC business, which accounts for roughly 60% of its operations. Higher interest rates, sluggish housing activity, and cautious consumer spending have weighed on demand for heating and cooling equipment, putting sales volumes under pressure.

Things took another turn for the worse on Oct. 28, when LII stock tumbled 10.6% after the company reported disappointing Q3 results and cut its full-year profit outlook. Although revenue grew 10.2% year over year (YOY) to $1.6 billion, adjusted EPS fell 7% annually to $6.84, missing expectations. Shrinking margins, rising costs, and pricing pressures prompted management to lower its 2026 adjusted EPS guidance to $21 to $21.50 range from the $23 to $24 range.

Analysts tracking Lennox International expect its diluted EPS to decline 7.6% year over year (YOY) to $21.39 for the fiscal year ending in December 2026. It has surpassed consensus EPS estimates in two of the past four quarters, while missing in two other occasions.

Meanwhile, among the 18 analysts covering LII stock, the consensus rating is a “Hold.” The rating is based on one “Strong Buy,” 15 “Holds,” one “Moderate Sell,” and one “Strong Sell” rating.

This configuration is less bullish than two months ago, when the overall rating was a “Moderate Buy.”

On Oct. 30, BNP Paribas analyst Andrew Buscaglia maintained a “Neutral” rating on LII stock and the price target was lowered from $450.00 to $350.00.

Based on analysts’ estimates, the mean price target of $372.58 implies 7% upside potential to LII’s current share price. The Street-high price target of $490 suggests that the stock could rally as much as 40.8%.

On the date of publication, Sristi Suman Jayaswal did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.