Stock Price & Analysis

Based on the provided data and recent market developments, here's a comprehensive analysis for ITW:

Technical Analysis

The stock is showing bullish momentum with strong technical indicators:

• RSI-14 at 59.08 indicates neutral to slightly bullish momentum
• MACD is positive with bullish divergence (MACD: 1.40, Signal: 0.35)
• Stock is trading above both 20-day (259.02) and 200-day (252.42) moving averages
• Current price at 255.77 is within the Bollinger Bands (Lower: 248.64, Upper: 269.40)

Fundamental Analysis

Recent Q4 2024 performance:

• EPS of $2.54 exceeded analyst expectations of $2.50
• Revenue declined 1.3% YoY to $3.932 billion
• Operating margin expanded 140bps to 26.2%
• Free cash flow increased 10% to $1.0 billion

2025 Outlook

• GAAP EPS guidance: $10.15-$10.55
• Organic growth projection: 0-2%
• Operating margin target: 26.5-27.5%
• Planned share repurchases: $1.5 billion

Strengths

• Strong dividend history with 61 consecutive years of increases
• Record operating margins of 26.8% in 2024
• Robust free cash flow conversion at 100%
• Well-diversified business model across seven segments

Risks

• Cyclical industry slowdown continuing
• Foreign currency translation headwind of $0.30 per share
• Modest growth projections for 2025
• Current P/E ratio of 24.9x appears somewhat elevated

Recommendation

BUY with a medium-term horizon. Despite near-term cyclical headwinds, ITW's:

• Strong operational efficiency
• Consistent dividend growth
• Robust cash flow generation
• Strategic customer-back innovation approach

Make it an attractive investment for those seeking stability and reliable income growth.

Based on the provided data and recent market developments, here's a comprehensive price prediction analysis for ITW stock in 2025:

Technical Analysis

The technical indicators show ITW is currently in a bullish trend with strong momentum:

• RSI-14 at 59.08 indicates moderate bullish momentum without being overbought
• MACD is positive with MACD (1.40) > Signal (0.35), suggesting continued upward momentum
• Stochastic RSI at 95.09 shows strong short-term buying pressure

Price Target Analysis

Key Fibonacci levels indicate potential price targets:

• Near-term resistance: $264.65 (R1)
• Medium-term target: $267.84 (R2)
• Long-term target: $273.00 (R3)

Fundamental Drivers

Recent earnings and guidance support the bullish case:

• Q4 2024 EPS of $2.54 beat estimates
• Operating margins expanded to record 26.2%
• Management projects 0-2% organic growth for 2025
• EPS guidance of $10.15-$10.55 for 2025

2025 Price Prediction

Based on the technical and fundamental analysis, ITW stock is expected to reach $273 by end of 2025, representing about 5.8% upside from current levels. This prediction is supported by:

• Strong technical momentum
• Record operating margins
• Consistent dividend growth track record
• Management's focus on operational efficiency
• Defensive business model across diverse segments

The stock should find support at $254.32 (S1) if market conditions deteriorate, while upside beyond $273 would require broader market strength or better-than-expected organic growth.

The S1 support level for ITW Stock is $258.25 ,The R1 resistant level for ITW Stock is $265.91.

As of the end of day on 2025-02-27, the price of ITW Stock was $261.15.

The target price for ITW Stock according to analyst rating is 271.36, with the highest price target at 302.00 and the lowest at 245.00. Analysts have a Hold rating on ITW Stock overall.

The market cap of ITW is $76.6B.

Based on the provided data and recent market developments, here's a concise analysis of ITW's valuation:

Valuation Metrics

• Current P/E ratio of 24.9x based on 2025 guidance midpoint of $10.35 EPS
• EV/EBITDA of 19.37x (2023)
• P/S ratio of 4.94x (2023)
• P/B ratio of 26.03x (2023)

Growth & Profitability

• Record operating margins of 26.8% in 2024
• Modest organic growth guidance of 0-2% for 2025
• EPS growth expected to be minimal in 2025 ($10.15-10.55 guidance vs $10.15 in 2024)

Technical Analysis

• RSI(14) at 59.08 indicates neutral momentum
• Trading above all major moving averages (SMA 20/60/200)
• Bollinger Band analysis shows price near upper band with 0.75 position, suggesting slight overvaluation

Conclusion: ITW appears overvalued at current levels based on:

• Premium valuation multiples vs historical averages
• Limited near-term growth prospects
• Technical indicators suggesting overbought conditions
• Current price trading at 24.9x forward earnings despite only modest growth expectations

The stock's premium valuation reflects its quality as a Dividend King with 61 years of consecutive dividend increases, but current price levels don't provide adequate margin of safety for new investments.

Illinois Tool Works Inc. is a global manufacturer of a diversified range of industrial products and equipment. The Company's segments include Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products, and Specialty Products. The Automotive OEM segment produces components and fasteners for automotive-related applications. The Food Equipment segment produces ware washing equipment, cooking equipment, refrigeration equipment, food processing equipment, kitchen exhaust, ventilation and pollution control systems and others. Its Welding segment produces arc welding equipment and metal arc welding consumables and related accessories. The Specialty Products segment offers conveyor systems and line automation for the food and beverage industries; plastic consumables that multi-pack cans and bottles and related equipment; airport ground support equipment; components for medical devices, and others.

Based on the provided data and recent company guidance, here's the 2030 price prediction analysis for ITW:

Current Market Position

Fundamental Outlook According to the latest earnings report, ITW's key metrics for 2025:

• EPS guidance: $10.15-$10.55
• Organic growth: 0-2% (1-3% excluding PLS)
• Revenue decline: 1-3% projected
• Operating margin target: 26.5-27.5%
• Planned share repurchases: $1.5 billion

Growth Drivers Through 2030

• Strong market position with 98% market share in core segments
• Consistent margin improvement through enterprise initiatives
• Robust free cash flow generation exceeding net income
• Strategic share repurchase program supporting EPS growth

2030 Price Target Analysis Based on the current fundamentals and growth trajectory:

• Base Case: $331.31

  • Assumes 5-year CAGR of ~4.6%
  • Conservative growth considering market maturity
  • P/E multiple compression to industry average

• Bull Case: $350-375

  • Successful margin expansion initiatives
  • Above-market organic growth achievement
  • Continued strong cash flow generation

• Bear Case: $290-310

  • Growth below guidance
  • Margin pressure from competition
  • Market multiple compression

Price Target: $331.31 by 2030 The most likely scenario points to a moderate upside from current levels, supported by:

• Consistent operational execution
• Strong market position
• Disciplined capital allocation
• Proven management track record

ITW has a total of 45000 employees.