Illinois Tool Works Inc (ITW): Today's Featured Industrial Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Illinois Tool Works ( ITW) pushed the Industrial industry higher today making it today's featured industrial winner. The industry as a whole closed the day up 0.9%. By the end of trading, Illinois Tool Works rose $1.06 (1.8%) to $61.33 on average volume. Throughout the day, 2.7 million shares of Illinois Tool Works exchanged hands as compared to its average daily volume of 2.8 million shares. The stock ranged in a price between $60.56-$61.50 after having opened the day at $60.89 as compared to the previous trading day's close of $60.27. Other companies within the Industrial industry that increased today were: Generac Holdings ( GNRC), up 20%, Lincoln Electric Holdings ( LECO), up 11.2%, Kadant ( KAI), up 10.3%, and H&E Equipment Services ( HEES), up 10.3%.
  • ACTIVE STOCK TRADERS: Get full access to Jim Cramer's thoughts for less than $3/week - sometimes before he says them on TV! Start with a 14-Day Free Trial.

Illinois Tool Works Inc. manufactures various industrial products and equipment worldwide. Illinois Tool Works has a market cap of $28.26 billion and is part of the industrial goods sector. The company has a P/E ratio of 14.7, above the average industrial industry P/E ratio of 12.3 and below the S&P 500 P/E ratio of 17.7. Shares are up 29% year to date as of the close of trading on Tuesday. Currently there are nine analysts that rate Illinois Tool Works a buy, one analyst rates it a sell, and seven rate it a hold.

TheStreet 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, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the negative front, China BAK Battery ( CBAK), down 23%, Altair Nanotechnologies ( ALTI), down 14%, Wowjoint Holdings ( BWOW), down 13.3%, and UQM Technologies ( UQM), down 9%, were all laggards within the industrial industry with AGCO ( AGCO) being today's industrial industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the industrial industry could consider SPDR Dow Jones Industrial Average ( DIA) while those bearish on the industrial industry could consider ProShares UltraShort Industrials ( SIJ).

FREE from Real Money's Jim Cramer: Winners and Losers Election 2012 - Steps to take NOW so you can profit no matter who is in charge! Free download now.
null

If you liked this article you might like

First Leg Down of United Tech; Hurricanes -- Jim Cramer's Top Thoughts

Cramer: Hurricanes Will Break the Decline of the Auto and Housing Industries

These Stocks Have Changed Direction

CBRE Group: Cramer's Top Takeaways