Trade-Ideas LLC identified

Illinois Tool Works

(

ITW

) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Illinois Tool Works as such a stock due to the following factors:

  • ITW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $184.3 million.
  • ITW has traded 11,117 shares today.
  • ITW is trading at a new lifetime high.

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More details on ITW:

Illinois Tool Works Inc. manufactures and sells industrial products and equipment worldwide. It operates through seven segments: Automotive OEM; Test & Measurement and Electronics; Food Equipment; Polymers & Fluids; Welding; Construction Products; and Specialty Products. The stock currently has a dividend yield of 2.2%. ITW has a PE ratio of 2. Currently there are 7 analysts that rate Illinois Tool Works a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Illinois Tool Works has been 2.1 million shares per day over the past 30 days. Illinois Tool Works has a market cap of $36.9 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.08 and a short float of 2.3% with 4.20 days to cover. Shares are up 9.4% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Illinois Tool Works as a

buy

. The company's strengths can be seen in multiple areas, such as its notable return on equity, expanding profit margins, good cash flow from operations, growth in earnings per share and solid stock price performance. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:

  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Machinery industry and the overall market, ILLINOIS TOOL WORKS's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • 42.69% is the gross profit margin for ILLINOIS TOOL WORKS which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 13.74% is above that of the industry average.
  • Net operating cash flow has significantly increased by 53.49% to $703.00 million when compared to the same quarter last year. In addition, ILLINOIS TOOL WORKS has also vastly surpassed the industry average cash flow growth rate of -2.40%.
  • ILLINOIS TOOL WORKS's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, ILLINOIS TOOL WORKS increased its bottom line by earning $5.13 versus $4.68 in the prior year. This year, the market expects an improvement in earnings ($5.46 versus $5.13).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Machinery industry average. The net income has remained constant at $450.00 million when compared to the same quarter one year ago.

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