Illinois Tool Works Inc (ITW): Today's Featured Industrial Goods 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 Goods sector higher today making it today's featured industrial goods winner. The sector as a whole closed the day up 1.6%. By the end of trading, Illinois Tool Works rose $1.18 (1.8%) to $65.70 on average volume. Throughout the day, 1,985,971 shares of Illinois Tool Works exchanged hands as compared to its average daily volume of 2,368,000 shares. The stock ranged in a price between $65.15-$65.96 after having opened the day at $65.15 as compared to the previous trading day's close of $64.52. Other companies within the Industrial Goods sector that increased today were: MagneGas Corporation ( MNGA), up 21.1%, Intellicheck Mobilisa ( IDN), up 13.2%, Olympic Steel ( ZEUS), up 13.0% and Dixie Group ( DXYN), up 10.9%.
  • EXCLUSIVE OFFER: Jim Cramer's Protege, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Illinois Tool Works Inc. manufactures and sells a range of industrial products and equipment worldwide. Illinois Tool Works has a market cap of $28.8 billion and is part of the industrial industry. The company has a P/E ratio of 12.0, below the S&P 500 P/E ratio of 17.7. Shares are up 6.1% year to date as of the close of trading on Thursday. Currently there are 9 analysts that rate Illinois Tool Works a buy, 1 analyst rates it a sell, and 7 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 largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins, increase in stock price during the past year and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, China Valves Technology ( CVVT), down 53.6%, Ecotality ( ECTY), down 6.8%, Ballard Power Systems ( BLDP), down 5.4% and IntriCon Corporation ( IIN), down 5.2%.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the industrial goods sector could consider Industrial Select Sector SPDR ( XLI) while those bearish on the industrial goods sector could consider ProShares Short Dow 30 ( DOG).

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.

null

More from Markets

Comcast Considering All-Cash Bid for Fox as Disney Battle Heads to the Wire

Comcast Considering All-Cash Bid for Fox as Disney Battle Heads to the Wire

Global Rally Stalls as Trump Doubts North Korea Summit, Questions China Trade

Global Rally Stalls as Trump Doubts North Korea Summit, Questions China Trade

Target's Stock Tanks After Q1 Earnings Miss and Slowing Sales

Target's Stock Tanks After Q1 Earnings Miss and Slowing Sales

Trump, China Trade, Target and Las Vegas Casinos - 5 Things You Must Know

Trump, China Trade, Target and Las Vegas Casinos - 5 Things You Must Know

Stocks Move Lower on Trade Fears and 4 Other Stories You Must Know Wednesday

Stocks Move Lower on Trade Fears and 4 Other Stories You Must Know Wednesday