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.

ITW was given price targets by several analysts. The most optimistic price target was 170, implying a possible profit of 20.71 percent. The most pessimistic analyst gave a price target of 120, which equates to a potential downside of -14.79 percent. One must be careful with overanalyzing price targets and ratings due to possible conflicts of interest among the analysts releasing them.

Over the past month, analysts have revised their estimates for this quarter's earnings, with a net average change of 0.91 percent. The average change in earnings estimates over the last 90 days is 1.53 percent. On the other hand, earnings estimates for the fiscal year have been revised upwards by 1.65 percent, as compared to a month ago. Expanding the time horizon to 3 months, the average change in fiscal year estimates becomes 1.82 percent.

Investors like to see analysts making revisions in the same direction, as that raises confidence in the revisions. Over the past month, 4 analysts increased their quarterly estimates, while 3 analysts made negative revisions. Also over the last month, 9 analysts increased their estimates for the FY earnings, while 0 analysts made negative revisions to their fiscal year's estimates.

The growth rate of ITW's earnings is estimated by analysts to be 4.3 percent. People on Wall Street often look at a company's PEG ratio. Investors like to see smaller values for the PEG ratio, because people typically see that as an indicator of higher growth relative to stock price. People often look for the PEG ratio to be under 1, although it is frequently more appropriate to compare PEG ratios to the company's peers. The PEG ratio of ITW is 5.3.

In the last 52-weeks, ITW has achieved a high of 150.29 and a low of 111.50. The current market price is above the trailing year's low by 26.3 percent, and 6.29 percent lower than its 52-week high. ITW has a P/E 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's next earnings release will be on 0000-00-00, which is days away.