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LECO · NASDAQ · STOCK

Lincoln Electric (LECO) Stock Analysis

Industrials Updated October 10, 2026
$261.19
52W $170.01 – $310.00
60/100
$14.23B
25.9
1.22
AI Committee Verdict
Buy
60/100
Conviction: Moderate · 60% agreement · 5 analysts
+6.4%
-4.8%
1.33:1
Moderate

Is LECO Bullish or Bearish?

Bullish. Innellis AI committee rates Lincoln Electric (LECO) Buy with a composite score of 60/100 , based on 5 analysts with 60% agreement. Last updated October 10, 2026.

What Would Change This View

Upgrade to Strong Buy
Requires a committee score of 75.0 — +15.34 from today. Applies on the first day at or above the line; upgrades are never dampened.
Downgrade to Watch
Requires the score to fall below 55.0 — -4.66 from today. The band boundary is 60.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.

Executive Summary

The primary driver is 3 consecutive earnings beats -- consistent execution. The main limiting factor is sector concentration is already high (hhi 2796.97). The committee is constructive but not yet at full conviction.

Bull & Bear Case

Bull Case
  • ROE of 37.2% shows genuine earnings power backing the valuation — Value
  • 3 consecutive earnings beats -- consistent execution — Growth
  • Quarter-over-quarter growth rate is ACCELERATING, not just positive — Growth
  • News sentiment is positive (+0.33 across 9 articles, 14d) — News
Bear Case
  • P/E of 25.7 is moderate-to-rich — Value
  • Price-to-book of 9.0x prices in significant intangible value — Value
  • MACD histogram negative -- bearish momentum — Technical
Both cases are generated from quantitative data signals, not qualitative or forward-looking judgement. They summarise what the numbers say today.
Price History (6M)

AI Investment Committee

Committee Consensus As of October 10, 2026
Overall Committee Score
60/100
Agreement
60%
Analysts
5
Conviction
Moderate
Sector Rank
Top 35%
of 227 Industrials peers
Value Analyst neutral
48 / 100 · Moderate confidence
Fair value -- neither a bargain nor obviously overpriced
+ ROE of 37.2% shows genuine earnings power backing the valuation
− P/E of 25.7 is moderate-to-rich
Growth Analyst bullish
68 / 100 · High confidence
Strong, accelerating growth with consistent execution
+ 3 consecutive earnings beats -- consistent execution
Technical Analyst neutral
48 / 100 · High confidence
Mixed or range-bound price action
− MACD histogram negative -- bearish momentum
Macro Analyst bullish
65 / 100 · Low confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
News Analyst bullish
68 / 100 · Low confidence
News flow and recent filings/analyst actions are net positive
+ News sentiment is positive (+0.33 across 9 articles, 14d)
Portfolio Manager bearish
30 / 100 · Moderate confidence
The existing book itself argues for caution here, independent of how good this specific stock looks
− Sector concentration is already high (HHI 2796.97)
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Investment Thesis Evolution

Committee score moved marginally from 61.5 to 59.7.

Analyst-level changes:
  • News Analyst: +1 bullish signal(s).
  • Technical Analyst: score 58->48 (-10); +1 bearish signal(s).
  • Value Analyst: +1 bearish signal(s).

Comparing 2026-10-09 to 2026-10-10 (1 day apart).

Technical Analysis

RSI (14)
39.6
Neutral
MACD Histogram
-0.278
Bearish Momentum
Trend Direction
Sideways
Weekly: Uptrend
Market Structure
Hh Hl
Support
$248.74
Resistance
$277.81
Bollinger %B
0.40
Inside Bands
Price vs Moving Averages
EMA 9
$266.00 Below
EMA 21
$266.89 Below
EMA 50
$267.65 Below
EMA 200
$260.22 Above

Fundamental Analysis

Valuation
35
Growth
82
Profitability
75
Financial Health
93
Cash Flow
70
Valuation
P/E Ratio 25.9×
P/B Ratio 9.18×
PEG Ratio 2.03
Dividend Yield 1.21%
52W High $310.00
52W Low $170.01
Quality & Growth
ROE 3541.5%
ROA 1378.0%
Gross Margin 3602.0%
Operating Margin 1758.2%
Revenue Growth YoY —
Debt / Equity 0.74
AI Fundamental Assessment
P/E ratio of 25.9 (moderate relative to a 15-40x range); Price-to-book of 9.2x; PEG ratio of 2.0 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 35.4%; Return on assets of 13.8%; Net margin of 12.4%; Gross margin of 36.0%; Current ratio of 1.98 (healthy short-term liquidity); Debt-to-equity of 0.74; Free cash flow per share is positive (9.46); Most recent quarter beat estimates by 2.3%; 3 consecutive earnings beats; EPS growth accelerating (-5.7% -> +17.2% QoQ); Average YoY EPS growth of 12.7%; Analyst estimates rising over recent quarters
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