This Day On The Street
Continue to site
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

4 Manufacturing Stocks to Watch

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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
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!
CAT $83.28 0.00%
ITW $95.87 0.00%
KMT $34.40 0.00%
PCAR $62.77 0.00%
AAPL $124.75 0.00%


DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs