Valued at a market cap of $76.6 billion, Illinois Tool Works Inc. (ITW) is a manufacturer of a diversified range of industrial products and equipment worldwide. Based in Glenview, Illinois, the company operates through seven segments: Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products; and Specialty Products.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks and Illinois Tool Works fits this description perfectly. The company is a Fortune 300 global multi-industrial manufacturing leader with production for engineered fasteners and components and specialty products.
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The specialty industry leader declined 5% from its 52-week high of $279.13. In the past three months, Illinois Tool Works has dipped 3.1%, outperforming the S&P 500 Index’s ($SPX) 5.8% decrease.
In the longer term, ITW has gained 4.6% on YTD, exceeding SPX’s 2.4% decline. However, over the last 52 weeks, shares of Illinois Tool Works have risen 1.9%, whereas the S&P 500 outperformed, gaining nearly 12.4%.
Yet, despite recent fluctuations, ITW has been trading above its 50-day moving average since August last year. Also, the stock remained above its 200-day moving average since September last year.
Despite reporting a better-than-expected Q4 2024 EPS of $2.54, ITW shares fell marginally as its 2025 profit forecast of $10.15 per share - $10.55 per share missed analysts'. Additionally, revenue declined 1.3% year-over-year to $3.9 billion, falling short of the estimate, signaling weaker sales performance. Investors were also concerned about the impact of high borrowing costs and persistent inflation, which are forcing customers to slow industrial equipment investments.
In contrast, rival A. O. Smith Corporation (AOS) fell behind ITW. AOS shares crumbled 19.3% in the last 52 weeks and moved up marginally on a YTD basis.
Due to the stock’s underperformance compared to broader markets over the past 52 weeks, analysts are cautious about its prospects. ITW has a consensus rating of “Hold” from the 17 analysts covering the stock. As of writing, ITW is trading below the mean price target of $268.07.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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