Forecasting The Future: 11 Analyst Projections For Illinois Tool Works

11 analysts have shared their evaluations of Illinois Tool Works ITW during the recent three months, expressing a mix of bullish and bearish perspectives.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for Illinois Tool Works, presenting an average target of $274.64, a high estimate of $318.00, and a low estimate of $250.00. Observing a 2.48% increase, the current average has risen from the previous average price target of $268.00.

Deciphering Analyst Ratings: An In-Depth Analysis

In examining recent analyst actions, we gain insights into how financial experts perceive Illinois Tool Works. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Illinois Tool Works. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Illinois Tool Works compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Illinois Tool Works's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Capture valuable insights into Illinois Tool Works's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Illinois Tool Works analyst ratings.

Discovering Illinois Tool Works: A Closer Look

Founded in 1912, Illinois Tool Works has become a diversified industrial manufacturer through acquisitions and innovations that follow customer needs. ITW operates through seven business segments, with no segment representing more than one fifth of revenue. ITW's automotive OEM segment sells vehicle components; its food equipment segment sells commercial kitchen appliances; its test & measurement and electronics segment sells inspection and analysis equipment; its welding segment sells welding equipment and consumables; its polymers & fluids segment sells industrial and consumer adhesives, solvents, and coatings; its construction products segment sells building fasteners and tools; and its specialty products segment sells medical, packaging, HVAC, and airport ground equipment.

Illinois Tool Works: Financial Performance Dissected

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

Negative Revenue Trend: Examining Illinois Tool Works's financials over 3 months reveals challenges. As of 30 September, 2024, the company experienced a decline of approximately -1.61% in revenue growth, reflecting a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 29.25%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Illinois Tool Works's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 36.52%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Illinois Tool Works's ROA excels beyond industry benchmarks, reaching 7.39%. This signifies efficient management of assets and strong financial health.

Debt Management: With a high debt-to-equity ratio of 2.46, Illinois Tool Works faces challenges in effectively managing its debt levels, indicating potential financial strain.

The Core of Analyst Ratings: What Every Investor Should Know

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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