Michael Boyd
Long/short equity, contrarian, medium-term horizon, mid-cap

Lennox International: Multi-Year Turnaround Still Has Legs

Lennox International (NYSE:LII) is a leading manufacturer and marketer of heating, ventilation, air conditioning, and refrigeration (HVACR) products such as furnaces and air conditioners. The company competes against some massive brands, such as United Technologies' (NYSE:UTX) Carrier brand of products and Ingersoll-Rand's (NYSE:IR) Trane brand. Despite the highly competitive business, Lennox has been able to expand its product offerings, grab market share, and improve its margins. Shareholders who were confident in the management and bought early have been rewarded, with Lennox's equity 137% in the past five years, far above both the S&P 500 and the aforementioned peers. Does the company have more room to run?

Business Model

Lennox International manufactures and sells its

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
PRO Top long ideas returned 21.7% in 2016**
"As a PRO member, we get uniquely valuable perspective that go beyond our quantiative analysis... We rely on PRO to get beyond the numbers quickly and add much needed perspective. It keeps me ahead of the next big thing. - Mark Choate, Malaga Cove Capital"
Mark Choate, Malaga Cove Capital
"Contributors (writers and commentators), often have a long history in the secuirities they opine on and some are clearly well positioned industry participants with detailed industry views that can help provide color on where the skeletons are buried in a particular secuirity and/or industry."
Jim Roumell, Roumell Asset Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details