Analyst Ratings for Illinois Tool Works Inc. (ITW)

Updated: 2017-07-28

An average rating of Overweight has been given to Illinois Tool Works Inc. (NYSE:ITW) by analysts covering the stock. ITW had previously received a consensus rating of Overweight a month ago.

A buy rating was issued by 9 analysts, 0 issued an overweight rating, 10 gave a hold rating, 0 issued an underweight rating, and 0 issued a sell rating. Over the past 90 days, the number of analysts that are bullish on the stock has increased by 1. During this time, the number of analysts bearish on the stock has decreased by 1.

Several price targets were given for ITW by the analysts covering the stock. The highest price target was 170, which equates to a potential upside of 20.71 percent. The most pessimistic analyst gave a price target of 120, which equates to a potential downside of -14.79 percent. Many analysts are not unbiased in their coverage of stocks, including price targets and stock ratings, so care must be taken in interpreting numbers released by them.

Over the past month, analysts have revised their estimates for this quarter's earnings, with a net average change of 0.91 percent. This can be compared with the average change in earnings estimates over the past 3 months, which is 1.53 percent. Meanwhile, fiscal year estimates have been revised upwards by 1.65 percent, compared to last month. If we look at the last 90 days instead, we find a net average change of 1.82 percent in FY estimates.

People are often interested in whether analysts were united in the direction of their revisions. 4 analysts have revised their quarterly estimates upwards in the past 30 days, while 3 analysts made negative revisions. Also over the last month, 9 analysts increased their estimates for the FY earnings, while 0 analysts decreased their estimates.

Analysts estimate earnings of ITW to grow at a rate of 4.3 percent. It's possible to gain additional insight about growth valuation of a company by looking at the PEG ratio. Investors like to see smaller values for the PEG ratio, because that is often interpreted as the company being fairly priced relative to its growth rate. PEG ratios below 1 are often considered desirable, though it could be better to see where the ratio stands relative to peers in the industry. ITW has a PEG ratio of 5.3.

In the trailing 52-weeks, ITW hit 150.29 at the highest peak, while it's lowest trading point was 111.50. The current market price is above the trailing year's low by 26.3 percent, and below the high by 6.29 percent. ITW has a price/earnings ratio of 22.79. Investors typically compare the P/E ratio to a company's peers in the industry. The ITW value stock report compares ITW to some of its peers using value stock charts. The stock has a market capitalization of $48.65 billion. ITW is estimated to release their earnings results for the quarter on 0000-00-00, days from today.