Analyst Expectations For Illinois Tool Works's Future

During the last three months, 6 analysts shared their evaluations of Illinois Tool Works ITW, revealing diverse outlooks from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $244.83, a high estimate of $277.00, and a low estimate of $224.00. This upward trend is evident, with the current average reflecting a 3.96% increase from the previous average price target of $235.50.

Decoding Analyst Ratings: A Detailed Look

The standing of Illinois Tool Works among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Illinois Tool Works. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Illinois Tool Works compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Illinois Tool Works's stock. This examination reveals shifts in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Illinois Tool Works's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Illinois Tool Works analyst ratings.

Get to Know Illinois Tool Works Better

Illinois Tool Works is a diversified global manufacturer that produces specialized industrial equipment, consumables, and related services. The firm operates 87 global divisions through seven distinct operating segments: automotive OEM, construction products, food equipment, specialty products, test/measurement and electronics, polymers and fluids, and welding. About half of its revenue comes from its operations in North America, with the remainder originating from international markets. ITW takes a bottom-up and decentralized approach to portfolio management, with the exception that each segment must apply its 80/20 operating process modeled on the Pareto principle.

Breaking Down Illinois Tool Works's Financial Performance

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

Revenue Growth: Illinois Tool Works's remarkable performance in 3 months is evident. As of 30 September, 2023, the company achieved an impressive revenue growth rate of 0.5%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Illinois Tool Works's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 19.15% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Illinois Tool Works's ROE stands out, surpassing industry averages. With an impressive ROE of 25.33%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Illinois Tool Works's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 4.97%, the company showcases efficient use of assets and strong financial health.

Debt Management: Illinois Tool Works's debt-to-equity ratio is notably higher than the industry average. With a ratio of 2.69, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

The Basics of Analyst Ratings

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

This article was generated by Benzinga's automated content engine and reviewed by an editor.