Valued at a market cap of $86.9 billion, Illinois Tool Works Inc. (ITW) is a diversified industrial manufacturing company based in Glenview, Illinois. It designs and produces a wide range of engineered products, including fasteners and components, equipment, consumable systems, and specialty industrial products, that serve markets such as automotive, construction, food equipment, test & measurement, polymers & fluids, and welding.
This industrial company has outpaced the broader market over the past 52 weeks. Shares of ITW have surged 15.2% over this time frame, while the broader S&P 500 Index ($SPX) has gained 11.8%. Moreover, on a YTD basis, the stock is up 21.6%, compared to SPX’s marginal drop.
However, narrowing the focus, ITW has lagged behind the State Street Industrial Select Sector SPDR ETF’s (XLI) 26.3% surge over the past 52 weeks. Nonetheless, it has outperformed XLI’s 12.3% YTD rise.
On Feb. 3, shares of ITW surged 5.6% after delivering better-than-expected Q4 earnings results. The company’s operating revenue increased 4.1% year-over-year to $4.1 billion, surpassing consensus estimates by a slight margin. Moreover, its net income per share of $2.72 grew 7.1% from the year-ago quarter, topping analyst expectations of $2.69.
For fiscal 2026, ending in December, analysts expect ITW’s EPS to grow 7.2% year over year to $11.25. The company’s earnings surprise history is promising. It exceeded the consensus estimates in each of the last four quarters.
Among the 17 analysts covering the stock, the consensus rating is a "Hold,” which is based on two “Strong Buy,” 10 “Hold,” and five "Strong Sell” ratings.
The configuration is more bearish than two months ago, with four analysts suggesting a “Strong Sell” rating.
On Feb. 9, Barclays PLC (BCS) analyst Julian Mitchell maintained an "Underweight" rating on ITW but raised its price target to $275.
While the company is trading above its mean price target of $277.73, its Street-high price target of $310 suggests a 3.5% potential upside from the current levels.
On the date of publication, Neharika Jain 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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