The Construction group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Lennox International (LII – Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let’s take a closer look at the stock’s year-to-date performance to find out.
Lennox International is a member of our Construction group, which includes 88 different companies and currently sits at #7 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Lennox International is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for LII’s full-year earnings has moved 3.8% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, LII has moved about 40.7% on a year-to-date basis. Meanwhile, stocks in the Construction group have gained about 15.4% on average. This shows that Lennox International is outperforming its peers so far this year.
Another stock in the Construction sector, Louisiana-Pacific (LPX – Free Report) , has outperformed the sector so far this year. The stock’s year-to-date return is 47.9%.
In Louisiana-Pacific’s case, the consensus EPS estimate for the current year increased 9.8% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Lennox International belongs to the Building Products – Air Conditioner and Heating industry, a group that includes 5 individual stocks and currently sits at #20 in the Zacks Industry Rank. On average, stocks in this group have gained 47.9% this year, meaning that LII is slightly underperforming its industry in terms of year-to-date returns.
Louisiana-Pacific, however, belongs to the Building Products – Wood industry. Currently, this 8-stock industry is ranked #146. The industry has moved +7.5% so far this year.
Lennox International and Louisiana-Pacific could continue their solid performance, so investors interested in Construction stocks should continue to pay close attention to these stocks.
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