This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

4 Manufacturing Stocks to Watch

Stocks in this article: PCAR KMT CAT ITW

Illinois Tool Works is a diversified manufacturer of engineering products and equipment operating through 840 business units across 57 countries. The company's product lines include transportation, industrial packaging, food equipment, power systems and electronics, construction equipment, polymers and fluids and decorative surfaces. Of the analysts covering the stock, 64% rate it a buy while the remaining analysts rate it a hold. There are no sell ratings on the stock. Analysts polled by Bloomberg on average believe the stock has upside of 17.4%.

The company reported an 11% increase in revenue for the fourth quarter to $4.17 billion, beating Wall Street analysts' expectations. However, net income dipped 29.2% due to the absence of tax adjustment benefit. Excluding the benefit, Illinois estimated income from continuing operations increased 30%. For all of 2010, revenue and net income were up 14.3% and 60%, respectively. The company's annual dividend payment rose almost 19% over the past five years.

Heading into the first quarter, Illinois forecasts revenue to rise between 12% to 15% and earnings per share to come in between 81 cents and 87 cents. Fourth-quarter earnings per share stood at 79 cents. For 2011, the company expects revenue to increase between 11.5% and 14.5%.

Business acquisitions in 2011 are likely to generate $800 million to $1 billion in additional revenue. The company expects to reach almost one-third of the total $1 billion with the recent purchase of the car-care products portfolio of Royal Dutch Shell (RDS.A), the Sopus Products unit. According to a Citi Investment Research report, this division of Royal Dutch has annual sales of $300 million and the Illinois deal is scheduled to close by the end of March.

>To see these stocks in action, visit the 4 Manufacturing Stocks to Watch portfolio on Stockpickr.

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.
5 of 5

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs