New Lifetime High Reached: Illinois Tool Works (ITW)

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.

Trade-Ideas LLC identified Illinois Tool Works ( ITW) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Illinois Tool Works as such a stock due to the following factors:

  • ITW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $185.1 million.
  • ITW has traded 852 shares today.
  • ITW is trading at a new lifetime high.

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More details on ITW:

Illinois Tool Works Inc. produces and sells engineered fasteners and components, equipment and consumable systems, and specialty products. The stock currently has a dividend yield of 2.1%. ITW has a PE ratio of 20.6. Currently there are 11 analysts that rate Illinois Tool Works a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for Illinois Tool Works has been 1.9 million shares per day over the past 30 days. Illinois Tool Works has a market cap of $36.1 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 0.98 and a short float of 2% with 3.29 days to cover. Shares are up 8.1% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Illinois Tool Works as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and compelling growth in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • ITW's revenue growth has slightly outpaced the industry average of 1.7%. Since the same quarter one year prior, revenues slightly increased by 3.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.97, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. To add to this, ITW has a quick ratio of 1.89, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Machinery industry and the overall market, ILLINOIS TOOL WORKS's return on equity exceeds that of both the industry average and the S&P 500.
  • 39.27% is the gross profit margin for ILLINOIS TOOL WORKS which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 14.38% is above that of the industry average.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Machinery industry average. The net income increased by 17.5% when compared to the same quarter one year prior, going from $452.00 million to $531.00 million.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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