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ITW Revenue data by YCharts

Illinois Tool Works (ITW)

Background: Illinois Tool Works manufactures and markets a variety of products and systems that provide specific, problem-solving solutions for a diverse customer base worldwide. The company was founded in 1912 and is based in Glenview, Ill. Illinois Tool Works trades an average of three million shares per day with a market cap of $28 billion.

52-Week Range: $39.12 - $60.45

Yield: 2.56%

Illinois Tool Works currently has an annualized dividend of $1.44. Reviewing the last three years of dividends, the average yearly dividend declared was $1.31. Steady increases in dividends during the last five years have resulted in the dividend growing an average of 13.3% each year.

Nine of the 16 analysts covering the company give a buy recommendation, and analysts have pegged $61.36 as the mean price target.

From a technical perspective, the chart on ITW looks interesting. The widely followed 50-day moving average above the 200-day moving average is bullish. The price and the moving average trends are all bullish.

The mean fiscal year estimate price-to-earnings ratio is a relatively light 14.4, based on earnings of $4.12 per share this year. Top and bottom lines have moved up over the last few years. This is another company that the best was saved for last. I will add that buying on a dip probably makes a lot of sense, given that the stock had a nice run higher in the last couple of months.

Currently, the short interest based on the float is small and not a big concern. Short interest is 3.2%.

I use SEC.gov, Zacks.com, WSJ.com, Tradestation and Reuters for my data. PE is generally adjusted based on an average number of shares and for operational earnings.



The author does not hold a position in any stock mentioned.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

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