Should You Buy Illinois Tool Works Inc (ITW) Today? Analysis, Price Targets, and 2026 Outlook.
Conclusion
Hold
Latest Price
258.690
1 Day change
-0.18%
52 Week Range
278.120
Analysis Updated At
2026/01/26
Illinois Tool Works Inc (ITW) is not a strong buy for a beginner investor with a long-term strategy at this time. While the stock shows some positive technical indicators and stability, the lack of significant growth in financial performance, negative analyst sentiment, and hedge fund selling suggest limited upside potential. A hold is recommended until stronger catalysts or improved financials emerge.
Technical Analysis
The stock's technical indicators are mixed. The MACD is positive but contracting, and the RSI is neutral at 52.593. Moving averages are bullish (SMA_5 > SMA_20 > SMA_200), suggesting a stable upward trend. Key support is at 253.553, and resistance is at 262.872. However, the stock closed at 258.26, near its pivot point, indicating limited immediate momentum.
Options Data
Bullish
Open Interest Put-Call Ratio
Bullish
Option Volume Put-Call Ratio
The low put-call ratios indicate bullish sentiment in the options market. However, implied volatility is relatively high (22.45), suggesting potential price swings.
Moving Average Consensus
Sell
4
Buy
8
Positive Catalysts
2026/01/26 01:33:02
The company's gross margin increased by 2.16% YoY, indicating operational efficiency. The bullish moving averages and low put-call ratios in the options market suggest some investor confidence.
Neutral/Negative Catalysts
2026/01/26 01:33:02
Hedge funds are selling heavily, with a 173.63% increase in selling activity last quarter. Analysts have downgraded the stock, citing limited upside and modest downside risks. Net income and EPS have dropped significantly YoY (-29.22% and -28.13%, respectively).
Financial Performance
In Q3 2025, revenue grew by 2.34% YoY to $4.059 billion, but net income dropped by 29.22% YoY to $821 million. EPS also fell by 28.13% YoY to 2.81. While gross margin improved to 44.05%, the overall financial performance shows declining profitability.
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
Analysts have a negative outlook on ITW. Goldman Sachs downgraded the stock to Sell with a price target of $230, citing limited upside and modest downside risks. Wells Fargo maintains an Underweight rating with a price target of $250. BofA upgraded the stock to Neutral but still sees limited growth potential.
Wall Street analysts forecast ITW stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for ITW is 258.13 USD with a low forecast of 230 USD and a high forecast of 275 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Analyst Rating
Wall Street analysts forecast ITW stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for ITW is 258.13 USD with a low forecast of 230 USD and a high forecast of 275 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Buy
4 Hold
3 Sell
Hold
Current: 259.150
Low
230
Averages
258.13
High
275
Current: 259.150
Low
230
Averages
258.13
High
275
Wells Fargo
Joseph O'Dea
Underweight
maintain
$245 -> $250
AI Analysis
2026-01-07
Reason
Wells Fargo
Joseph O'Dea
Price Target
$245 -> $250
AI Analysis
2026-01-07
maintain
Underweight
Reason
Wells Fargo analyst Joseph O'Dea raised the firm's price target on Illinois Tool Works to $250 from $245 and keeps an Underweight rating on the shares. Discussing the Electrical Equipment & Multi-Industry space, the firm says it expects largely underwhelming initial 2026 guidance ranges in a prudent approach to expectation setting.
Goldman Sachs
Neutral -> Sell
downgrade
$258 -> $230
2025-12-16
Reason
Goldman Sachs
Price Target
$258 -> $230
2025-12-16
downgrade
Neutral -> Sell
Reason
Goldman Sachs downgraded Illinois Tool Works to Sell from Neutral with a price target of $230, down from $258. The company is well run but the shares offer limited further upside, the analyst tells investors in a research note. Goldman sees modest downside risk to estimates and believes the stock's multiple is unlikely to re-rate relative to the group given the rate of its earnings improvement.
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