ITW Stock Analysis — Illinois Tool Works
Sector: Industrials
AI Verdict
ITW is cheap on a technical basis with its RSI at 22.3, but at 22.1x forward earnings for just 5.1% growth, you’re paying up for stability and a sticky business model rather than real momentum.
Competitive Moat
Illinois Tool Works owns a portfolio of specialized industrial businesses with high switching costs, often embedded in customers’ manufacturing processes. Its decentralized structure and proprietary processes like the 80/20 business model help sustain margins and defend market share.
Summary
ITW is flashing an RSI of 22.3, marking it as deeply oversold after a flat 0.31% return over the past year.
Where It Stands
ITW trades at 22.1x next year's earnings, just above the industrials sector median of 20x, with a muted 5.1% forward EPS growth and an RSI of 22.3 signaling extreme oversold conditions.
Key Metrics
- RSI: 22.3 — Oversold
- Trailing P/E: 23.2x
- Forward P/E: 22.1x
- PEG Ratio: 4.09
- Earnings Growth: +0.1%
- Revenue Growth: +0.0%
- Market Cap: $72.0B
- Dividend Yield: 0.03%
- 1-Year Return: 0.31%
- 52-Week High: $303.16
- 52-Week Low: $238.82
Analyst Consensus
2 Buy · 13 Hold · 11 Sell (26 analysts)
Bull Case
The stock’s RSI of 22.3 is well below the oversold threshold, suggesting a potential rebound for this $72.0B industrials name.
Bear Case
At 22.1x forward earnings for just 5.1% expected EPS growth, you’re paying a premium the numbers don’t yet support if margin expansion stalls.
Catalyst to Watch
Watch for the next earnings report to see if EPS growth can accelerate beyond the current 5.1% consensus.