Last Updated: 15 Sep 2024
Executive Summary
Illinois Tool Works Inc. (ITW) is a leading global manufacturer of engineered fasteners and components, equipment and consumable systems, and specialty products. With a market capitalization of $74.7 billion, ITW is a well-established company with a strong track record of financial performance. The company's stock is currently trading at $251.75, within its 52-week range of $213.94 to $268.13.
Company Overview
ITW was founded in 1912 and is headquartered in Glenview, Illinois. The company operates in over 50 countries and employs approximately 50,000 people. ITW's products are used in a wide range of industries, including aerospace, automotive, construction, electronics, and healthcare.
Fundamental Analysis
ITW's financial performance has been strong in recent years. The company's revenue has grown at a compound annual growth rate (CAGR) of 5.3% over the past five years, while its earnings per share (EPS) have grown at a CAGR of 10.2%. ITW's profit margin is 19.2%, and its return on equity is 101.3%.
ITW's balance sheet is also strong. The company has $4.6 billion in cash and equivalents and $10.3 billion in total debt. ITW's debt-to-equity ratio is 0.4, which is below the industry average of 0.6.
Technical Analysis
ITW's stock price has been trending sideways in recent months. The stock is currently trading above its 50-day moving average but below its 200-day moving average. The relative strength index (RSI) is 52.5, which indicates that the stock is neither overbought nor oversold.
Short Term Outlook
In the short term, ITW's stock price is likely to continue to trade sideways. The company's financial performance is strong, but the overall market is uncertain. Investors should consider buying ITW stock on dips, with a target price of $260.
Long Term Outlook
In the long term, ITW's stock price is likely to continue to rise. The company's strong financial performance and its position as a leader in its industry make it a good investment for long-term investors. Investors should consider holding ITW stock for the long term, with a target price of $300.
Analyst Recommendations
The majority of analysts have a "hold" rating on ITW stock. However, there are a number of analysts who have a "buy" or "strong buy" rating on the stock. The average analyst target price for ITW stock is $246.97.
