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 was unchanged today. By the end of trading, Illinois Tool Works rose 98 cents (1.6%) to $62.23 on heavy volume. Throughout the day, 6.5 million shares of Illinois Tool Works exchanged hands as compared to its average daily volume of 2.2 million shares. The stock ranged in a price between $61.14-$62.23 after having opened the day at $61.37 as compared to the previous trading day's close of $61.25. Other companies within the Industrial industry that increased today were: Ultralife Batteries ( ULBI), up 9.7%, China Valves Technology ( CVVT), up 8.8%, Metalico ( MEA), up 7.3%, and Magnetek ( MAG), up 6.4%.
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Illinois Tool Works Inc. manufactures and sells a range of industrial products and equipment worldwide. Illinois Tool Works has a market cap of $27.68 billion and is part of the industrial goods sector. The company has a P/E ratio of 11.6, below the S&P 500 P/E ratio of 17.7. Shares are up 0.7% year to date as of the close of trading on Thursday. Currently there are eight 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, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the negative front, Clean Diesel Technologies ( CDTI), down 9.9%, Intellicheck Mobilisa ( IDN), down 9.3%, JinkoSolar ( JKS), down 8.6%, and Handy & Harman ( HNH), down 8.3%, were all laggards within the industrial industry with Stratasys ( SSYS) 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).

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