AlertEdge.io
Single-Ticker Trade Brief
LII — Lennox International Report Date: 2026-10-22 17:39 UTC  |  Sector: Industrials  |  Rating:
RISK DISCLAIMER: This is an automated breakout signal. Always validate before entering a position.
▲ Breakout Signal — Volume Confirmed

LII closed above the $377.7 breakout level on 1.23x average volume. ATR-based levels set automatically. Next resistance target: $397.67.

Ticker
LII
Entry Price
$380.74
Breakout Level
$377.7
Stop Loss
$369.23
TP1 Target
$397.67
TP2 Target
$408.96
Risk / Reward
1 : 1.47
1.23x avg volume
View LII Chart on TradingView

Key Price Levels

TP1 Target
$397.67
Breakout Level
$377.7
Entry
$380.74
Stop Loss
$369.23

Fundamentals

P/E Ratio
16.77866
EPS (TTM)
22.68
Dividend Yield
148.0%
52-Wk High
587.27
52-Wk Low
340.32
Beta
1.163

Deep Dive Analysis — Claude Sonnet

ALERTEDGE TRADE BRIEF — LII (Lennox International)

Generated at signal price $380.74

SETUP

LII is clearing the $377.70 breakout level on a gap-up session, adding 3.87% today from a prior close of $366.37. Price is holding above the breakout zone with the bar closing near session highs, confirming buyer follow-through. However, context matters: LII is still trading at roughly $207 below its 52-week high of $587.27, meaning this bounce is occurring deep within a longer-term downtrend. The breakout is real, but it is a recovery move, not a new-high breakout. Signal quality score of 50/100 confirms entry is not early in the move.

CATALYSTS

LII has been a consistent earnings beater across five straight quarters, including a massive 32.3% beat in January 2025. The HVAC sector benefits from ongoing residential replacement demand, aging infrastructure, and any cooling-season tailwinds heading into summer. Multiple directors acquired shares in May and August 2026, with one director adding a significant 8,988 shares — a meaningful insider accumulation cluster that adds credibility to the long thesis. Valuation is reasonable at a 16.8x P/E given the earnings track record.

RISKS

The 52-week high at $587.27 versus current price near $381 signals the stock has shed roughly 35% from peak. This breakout could easily be a relief rally within a broader downtrend rather than a trend reversal. The dividend figure of 148% appears anomalous and may reflect a data error — do not rely on it. Volume is only 1.23x average, which is modest confirmation for a gap-up of this magnitude. Risk/reward of 1:1.47 is acceptable but not compelling. Next earnings are not until October 2026, removing a near-term catalyst. A close back below $369.23 would invalidate the setup immediately.

CONVICTION: Medium

Consistent earnings beats and director buying support the long case, but the stock remains in a significant drawdown from highs and volume confirmation is underwhelming for the size of today's gap.

Entry: $380.74 | Stop: $369.23 | TP1: $397.67 | TP2: $408.96