Lennox International Inc. (LII), headquartered in Richardson, Texas, designs, manufactures, and markets products for the heating, ventilation, air conditioning, and refrigeration markets. Valued at $20.7 billion by market cap, the company sells its products and services through direct sales, distributors, and company-owned parts and supplies stores. 

Shares of this leader in energy-efficient climate-control solutions have underperformed the broader market over the past year. LII has gained 5.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 20.6%. In 2025, LII’s stock is down 3.1%, compared to the SPX’s 9.6% rise on a YTD basis. 

Narrowing the focus, LII’s underperformance is also apparent compared to the Industrial Select Sector SPDR Fund (XLI). The exchange-traded fund has gained about 22.9% over the past year. Moreover, the ETF’s 15.3% gains on a YTD basis outshine LII’s single-digit dip over the same time frame.

On Jul. 23, LII shares closed up by 6.6% after reporting its Q2 results. Its revenue stood at $1.5 billion, up 3.4% year over year. The company’s adjusted EPS increased 14.5% from the year-ago quarter to $7.82.

For the current fiscal year, ending in December, analysts expect LII’s EPS to grow 6.4% to $24.02 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.

Among the 17 analysts covering LII stock, the consensus is a “Hold.” That’s based on six “Strong Buy” ratings, six “Holds,” one “Moderate Sell,” and four “Strong Sells.”

The configuration has been consistent over the past three months. 

On Aug. 1, Joe O’Dea from Wells Fargo & Company (WFC) maintained a “Sell” rating on LII with a price target of $675, implying a potential upside of 14.3% from current levels.

The mean price target of $670.93 represents a 13.6% premium to LII’s current price levels. The Street-high price target of $754 suggests an ambitious upside potential of 27.7%.