From Yahoo Finance: 2025-04-27 23:06:00

Lennox International Inc. (NYSE:LII) is a small-cap manufacturing stock that hedge funds are buying. The company has a market capitalization of $18.71 billion and is held by 39 hedge funds. Lennox designs, manufactures, and markets HVAC products through various channels. In Q1 2025, the Home Comfort Solutions segment saw a 7% increase in sales, driven by new environmentally friendly products. Despite flat sales volumes, the transition to low-GWP products positions Lennox to meet demand. While LII ranks 7th in small-cap manufacturing stocks, the potential for high returns in the AI sector is also highlighted.

Charles Schwab’s chief investment strategist, Liz Ann Sonders, discussed concerns about manufacturing stalling due to policy uncertainty. Recent PMI data shows services activity declining, but manufacturing improving. However, policy-related uncertainty poses a risk to manufacturing growth. Sonders highlighted weakening indicators and emphasized that rising policy uncertainty affects investment intentions. She noted discussions about deficit reductions and the impact of tariffs, immigration policies, and regulatory changes on growth estimates. Market yields are driven by concerns about slowing growth rather than declining inflation, leading investors to favor defensive sectors.



Read more at Yahoo Finance: Is Lennox International Inc. (NYSE:LII) a Small-Cap Manufacturing Stock Hedge Funds Are Buying?