ITW - Illinois Tool Works: Valuation Suggests More Pain To Come
2024-07-16 13:50:16 ET
Summary
- ITW is a globally diversified manufacturer with stable cash flows and high returns on capital.
- ITW's strategic approach has delivered high margins and capital discipline but little revenue growth.
- ITW has historically improved profitability and returns on capital, but current stock price may be overvalued.
- Upcoming Q2 earnings announcement could be a catalyst for further stock price declines unless revenue growth can be found.
Author's Preamble
I have an actively managed investment portfolio and I regularly trade stocks within my investing universe (or watch list) depending upon the stock's price relative to my estimate of its intrinsic value and its market trading patterns (technical indicators).
I share my valuations with readers as a way to get feedback and to gain new insights from other knowledgeable investors....
Illinois Tool Works: Valuation Suggests More Pain To Come