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

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 lower today making it today's featured Industrial laggard. The industry as a whole closed the day down 0.8%. By the end of trading, Illinois Tool Works fell $0.80 (-1.2%) to $64.38 on average volume. Throughout the day, 2,542,654 shares of Illinois Tool Works exchanged hands as compared to its average daily volume of 2,425,300 shares. The stock ranged in price between $64.21-$65.24 after having opened the day at $65.18 as compared to the previous trading day's close of $65.18. Other companies within the Industrial industry that declined today were: Exide Technologies ( XIDE), down 18.0%, China BAK Battery ( CBAK), down 9.5%, Simpson Manufacturing ( SSD), down 8.9% and Ecotality ( ECTY), down 8.4%.
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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 $29.0 billion and is part of the industrial goods sector. The company has a P/E ratio of 12.0, below the S&P 500 P/E ratio of 17.7. Shares are up 7.2% year to date as of the close of trading on Thursday.

TheStreet Ratings rates Illinois Tool Works as a buy. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, 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 positive front, Intellicheck Mobilisa ( IDN), down 13.1%, JinkoSolar ( JKS), down 12.9%, China Valves Technology ( CVVT), down 4.5% and ZBB Energy Corporation ( ZBB), down 4.0%.

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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