Is LECO a good stock to buy? We came across a bullish thesis on Lincoln Electric Holdings, Inc. on MaxDividends’s Substack by Serhio MaxDividends. In this article, we will summarize the bulls’ thesis on LECO. Lincoln Electric Holdings, Inc.’s share was trading at $268.91 as of June 24th. LECO’s trailing and forward P/E were 27.74 and 25.00 respectively according to Yahoo Finance.
Lincoln Electric Holdings, Inc. (LECO) is presented as a high-quality industrial compounder with a dominant position in the global welding industry, supplying arc welding equipment, consumables, automation systems, and cutting solutions across more than 160 countries. Founded in 1895 with just $200 by John C. Lincoln, the company has grown into an industry leader generating $4.23 billion in annual sales while targeting more than $6 billion in revenue by 2030.
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The investment thesis centers on Lincoln Electric’s ability to combine steady organic growth, disciplined acquisitions, and expanding automation capabilities with a shareholder-friendly capital allocation strategy. Despite operating in a mature industrial sector, the company continues to benefit from increasing demand tied to infrastructure spending, electrification projects, renewable energy investments, and manufacturing automation.
Financial performance remains strong, highlighted by a record first quarter of 2026 in which net sales increased 11.7% year over year to $1.121 billion, organic sales grew 7.8%, and adjusted earnings per share reached a record $2.50, exceeding expectations despite tariff-related challenges and broader trade uncertainty. The company’s automation business represents a significant long-term growth opportunity, with management targeting $1 billion in automation sales at attractive mid-teens margins, while acquisitions have historically added meaningful annual revenue growth.
Lincoln Electric also offers a compelling dividend growth profile, having increased its dividend for 24 consecutive years while maintaining a conservative 32.61% payout ratio, allowing substantial reinvestment into growth initiatives and share repurchases. Supporting the bull case is the company’s unique profit-sharing culture, which has driven operational excellence for decades.
With record financial results, a clear path toward its $6 billion revenue objective, durable competitive advantages, and exposure to attractive industrial growth trends, Lincoln Electric appears well positioned to continue compounding earnings and shareholder value over the long term.
Previously, we covered a bullish thesis on Hubbell Incorporated (HUBB) by Stock Analysis Compilation in December 2024, which highlighted the company’s strong positioning in grid modernization, energy infrastructure upgrades, and the renewable energy transition. HUBB’s stock price has appreciated by approximately 10.93% since our coverage. Serhio MaxDividends shares a similar view but emphasizes Lincoln Electric’s automation-driven growth, acquisition strategy, record financial results, and long-term industrial compounding potential.
Lincoln Electric Holdings, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 51 hedge fund portfolios held LECO at the end of the first quarter which was 40 in the previous quarter. While we acknowledge the risk and potential of LECO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LECO and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
