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

Feb 3, 2014 5:01 PM EST

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Illinois Tool Works ( ITW) pushed the Industrial Goods sector lower today making it today's featured Industrial Goods laggard. The sector as a whole closed the day down 3.0%. By the end of trading, Illinois Tool Works fell $2.09 (-2.6%) to $76.78 on average volume. Throughout the day, 2,424,908 shares of Illinois Tool Works exchanged hands as compared to its average daily volume of 1,859,100 shares. The stock ranged in price between $76.75-$79.35 after having opened the day at $78.89 as compared to the previous trading day's close of $78.87. Other companies within the Industrial Goods sector that declined today were: Trex Company ( TREX), down 9.9%, Real Goods Solar ( RSOL), down 9.1%, Hydrogenics Corporation ( HYGS), down 7.9% and Harsco Corporation ( HSC), down 7.8%.

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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 $35.2 billion and is part of the industrial industry. The company has a P/E ratio of 21.8, above the S&P 500 P/E ratio of 17.7. Shares are down 6.2% year to date as of the close of trading on Friday. Currently there are 9 analysts that rate Illinois Tool Works a buy, 2 analysts rate it a sell, and 5 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 revenue growth, expanding profit margins, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

You can view the full Illinois Tool Works Ratings Report.

On the positive front, China Recycling Energy Corporation ( CREG), up 7.2%, THT Heat Transfer Technology ( THTI), up 6.5%, Taser International ( TASR), up 5.2% and Ideal Power ( IPWR), up 4.7%.

Use our industrial goods section to find sector-relevant news.
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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).