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 $178.7 million.
  • ITW has traded 16,791 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 1.9%. ITW has a PE ratio of 21. Currently there are 7 analysts that rate Illinois Tool Works a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Illinois Tool Works has been 1.5 million shares per day over the past 30 days. Illinois Tool Works has a market cap of $41.2 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.11 and a short float of 2.4% with 4.96 days to cover. Shares are up 23.9% year-to-date as of the close of trading on Monday.

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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 solid stock price performance, growth in earnings per share, increase in net income, notable return on equity and good cash flow from operations. 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:

  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
  • ILLINOIS TOOL WORKS has improved earnings per share by 12.3% in the most recent quarter compared to the same quarter a year ago. 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 ($5.61 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 increased by 9.4% when compared to the same quarter one year prior, going from $480.00 million to $525.00 million.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. 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.
  • Net operating cash flow has increased to $535.00 million or 19.41% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -8.63%.

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