Core Viewpoint - Goldman Sachs downgraded Illinois Tool Works (NYSE: ITW) to Sell from Neutral, setting a price target of $230 due to expectations of below-average growth compared to large-cap cyclical peers [1] Group 1: Company Performance - ITW's organic revenue and earnings growth are expected to continue lagging behind peers, with organic growth averaging around 2% and earnings per share growth at approximately 5.5% since 2017 [2][3] - The company previously benefited from a significant simplification of its organizational structure, leading to about 800 basis points of margin expansion from 2012 to 2017 [2] Group 2: Market Outlook - Goldman Sachs anticipates that ITW's substantial exposure to consumer end markets may negatively impact its performance, leading to below-average organic and EPS growth over the next two years [3] - The firm is constructive on an overall inflection in industrial activity but remains cautious about ITW's specific market conditions [3] Group 3: Valuation and Price Target - Goldman Sachs sees modest downside risk to earnings estimates and believes the stock's valuation multiple is unlikely to re-rate due to the pace of earnings improvement [4] - The $230 price target is based on a 15.0x multiple applied to projected EBITDA for quarters five through eight, implying a 2027 free cash flow yield of approximately 5% [4]

Illinois Tool Works Inc. (NYSE:ITW) is included among the 15 High Quality Dividend Stocks for Long-Term Investors. BofA Raises ITW Price Target as Margins Reach Record Levels On November 18, BofA analyst An‍drew Obin upgraded Illinois Tool Works Inc. (NYSE:ITW) to Neutral from‌ Underperform, raising th‌e pri‌ce target to $2⁠5⁠5 from $220. The analyst noted that strong year-over-year margin expansion is exp‍ected in 2026, w⁠hich sh‌ould he⁠lp EPS growth keep pace with indust‍ry peers through 2026–2027. I ...

Company Overview - Illinois Tool Works Inc. (ITW) is headquartered in Glenview, Illinois, and manufactures engineered fasteners, components, equipment, consumables, and specialty products for diverse industries [1] - The company operates in automotive OEM, welding, food equipment, test and measurement, polymers and fluids, construction products, and specialty segments across more than 50 countries [1] - ITW has a market capitalization of $72.32 billion, classifying it as a "large-cap" stock [1] Stock Performance - ITW's stock reached a 52-week low of $214.66 in April but has increased by 16.1% since then [2] - Over the past three months, the stock has declined by 6.2% due to weaker-than-expected topline results, while the Industrial Select Sector SPDR Fund (XLI) has gained marginally [2] - The stock has underperformed over the longer term, declining by 9.7% over the past 52 weeks but gaining 2.2% over the past six months, compared to the Industrial Select Sector ETF which gained 7.3% and 7.8% over the same periods [3] Financial Results - On October 24, ITW reported mixed third-quarter 2025 results, with operating revenue growing modestly by 2.3% year-over-year (YOY) to $4.06 billion, missing the $4.08 billion estimate from Wall Street analysts [4] - The company's net income per share dropped 28.1% annually to $2.81, although this exceeded the Wall Street analysts' estimate of $2.69 [5] - Excluding divestiture gains from the prior year's period of $1.26, EPS grew 6% YOY [5] Comparative Analysis - ITW's performance is compared with Emerson Electric Co. (EMR), which has seen a marginal increase over the past 52 weeks and an 11.4% gain over the past six months, indicating that ITW has underperformed Emerson Electric during these periods [6] Analyst Sentiment - Wall Street analysts have a consensus rating of "Hold" for ITW's stock, with a mean price target of $263 indicating a 5.5% upside compared to current levels [7] - The highest price target from analysts is $287, suggesting a 15.1% upside [7]

Core Insights - Illinois Tool Works Inc. (ITW) is a diversified industrial company with a market capitalization of $70 billion, serving various sectors including food equipment, welding, automotive OEM, construction, polymers and fluids, and specialty products [1] Performance Overview - Over the past 52 weeks, ITW shares have declined by 10.4%, underperforming the S&P 500 Index, which has gained 13.7% during the same period [2] - Year-to-date, ITW's stock is down 4.6%, while the S&P 500 has returned 13.4% [2] - ITW has also underperformed the Industrial Select Sector SPDR Fund (XLI), which has seen a 7.8% increase over the past 52 weeks and a 13.7% rise year-to-date [3] Earnings Report - On October 24, ITW's shares fell by 4.5% following a mixed Q3 earnings report, where EPS decreased by 28.1% year-over-year to $2.81, although it exceeded consensus estimates by 4.5% [3] - Operating revenue for the quarter was $4.1 billion, reflecting a 2.3% increase from the previous year, but it slightly missed analyst expectations, impacting investor confidence [3] Future Projections - For the current fiscal year ending in December, analysts project ITW's EPS to grow by 2.9% year-over-year to $10.44 [4] - ITW has a strong earnings surprise history, having exceeded consensus estimates in each of the last four quarters [4] Analyst Ratings - Among 17 analysts covering ITW, the consensus rating is a "Hold," with two "Strong Buy," ten "Hold," one "Moderate Sell," and four "Strong Sell" ratings [4] - Bank of America maintained a "Sell" rating on ITW with a price target of $220, while the mean price target is $261.47, indicating a 7.6% premium from current levels [6] - The highest price target from analysts is $287, suggesting an 18.1% potential upside from current levels [6]

Core Insights - Illinois Tool Works Inc. (ITW) is recognized as one of the 15 Best DRIP Stocks to Own Right Now [1] - Baird has raised its price target for ITW to $265 from $258 while maintaining a Neutral rating, reflecting modestly positive organic growth in the company's third-quarter results [2] - ITW declared a quarterly dividend of $1.61 per share, maintaining its status as a Dividend King with 53 consecutive years of dividend increases [3] Financial Performance - For Q3 2025, ITW reported revenue of $4.1 billion, representing a 2% year-over-year increase, with 1% attributed to organic growth [3] Company Overview - Illinois Tool Works Inc. is a global diversified manufacturer producing specialized industrial equipment, consumables, and related services across various end markets [4]

Core Insights - The S&P 500 has increased by 96% over the last five years, while Illinois Tool Works (ITW) has only gained less than 20% in the same period, indicating a potential for ITW to outperform the index by 2030 [1] Industry Overview - ITW operates as an industrial conglomerate with a diversified business model across seven core segments, including automotive manufacturing, construction products, food equipment, and more, with no single segment exceeding 20% of sales in 2024 [3] - The company has faced an industrywide slowdown due to supply chain disruptions, tariff uncertainties, geopolitical tensions, and high interest rates, leading to an expected earnings growth of only 3% for the full year 2025 [4] Competitive Advantages - Despite current challenges, ITW continues to achieve above-market organic growth through its Customer-Back Innovation strategy, which focuses on aligning product development with customer needs [6] - ITW maintains a decentralized, entrepreneurial culture that fosters flexibility and innovation, allowing small teams to respond effectively to customer demands [7] - The company has a strong financial position, being a cash cow that has raised its dividend for over 60 consecutive years, making it attractive for risk-averse investors [7]

Group 1 - Timothy Mellon anonymously donated $130 million to fund paychecks for US Armed Forces during a government shutdown [1] - Andrew Mellon, a prominent figure from the Gilded Age, served as US Secretary of the Treasury and founded Union Steel and acquired Gulf Oil [2] - The Hughes family's wealth originates from Public Storage Inc., which owns 9% of the self-storage space in the US as of 2023 [3] Group 2 - The article ranks the 35 richest families in the US based on estimated net worths from Forbes as of February 2024 [4] - Notable families include the Hearsts, Newhouses, Waltons, and Pritzkers, who built wealth through various industries including publishing, retail, and hospitality [5][6] Group 3 - The Rollins family, through Rollins Inc., owns Orkin, the largest pest control corporation in the US, with the family holding about 40% of the company [7][8] - The Chao family, with a net worth of $14.2 billion, founded Westlake Corporation, a leader in petrochemicals, generating $12.1 billion in revenue in 2024 [9][10] Group 4 - The Haslam family, with a net worth of $14.4 billion, built wealth through the Pilot Company, which is now fully owned by Berkshire Hathaway [11] - The Crown family, with a net worth of $14.7 billion, has diverse holdings through Henry Crown & Company, including ski resorts and manufacturing firms [13] Group 5 - The Stryker family, with a net worth of $15.9 billion, owns 11% of Stryker Corporation, which had sales exceeding $20 billion in 2023 [15][16] - The Meijer family operates a grocery store chain with over 500 locations and an estimated annual revenue of $22 billion [18] Group 6 - The Marriott family, with a net worth of $15.9 billion, owns hotel brands like Sheraton and Ritz-Carlton, with the family holding approximately 16% of the company's shares [20][21] - The Johnson family, with a net worth of $16 billion, has ties to Johnson & Johnson, a global pharmaceutical brand [23][24] Group 7 - The Kohler family, with a net worth of $16.2 billion, has transitioned from manufacturing farm tools to bathroom fixtures, generating $9 billion in revenue in 2024 [25] - The Brown family, with a net worth of $16.5 billion, owns Brown-Forman Corp., known for brands like Jack Daniel's [27] Group 8 - The Dorrance family, with a net worth of $17 billion, controls over 50% of Campbell Soup Company, which generates more than $9 billion in annual revenue [29] - The du Pont family, with a net worth of $18.1 billion, has a long-standing fortune from the chemicals giant DuPont, founded in 1802 [30] Group 9 - The Ziff family, with a net worth of $18.5 billion, grew their wealth through Ziff Davis Inc. and investments via Ziff Brothers Investments [32][34] - The Butt family, with a net worth of $18.8 billion, operates H.E. Butt grocery stores, generating over $46 billion in revenue in 2024 [36] Group 10 - The Taylor family, with a net worth of $19 billion, controls Enterprise Mobility, which reported $35 billion in revenue in the 2023 fiscal year [38] - The Smith family, with a net worth of $19.8 billion, has significant holdings in Illinois Tool Works and Northern Trust [42] Group 11 - The Reyes family, with a net worth of $19.9 billion, leads Reyes Holdings, a major food-and-beverage distributor [44] - The Busch family, with a net worth of $20 billion, has historical ties to Anheuser-Busch, which was fully bought out for $52 billion in 2008 [45] Group 12 - The Hearst family, with a net worth of $22.4 billion, controls Hearst Corporation, a major media conglomerate [47] - The Newhouse family, with a net worth of $24.1 billion, derives wealth from Advance Publications, which owns Condé Nast [49] Group 13 - The Hunt family, with a net worth of $24.8 billion, built their fortune through Hunt Oil Company and various real estate investments [50] - The Lauder family, with a net worth of $25.9 billion, operates Estée Lauder, generating over $15 billion in revenue in fiscal year 2024 [53] Group 14 - The Cox family, with a net worth of $26.8 billion, has diversified interests in cable, media, and automotive industries, generating about $20 billion in revenue annually [56] - The Duncan family, with a net worth of $30 billion, controls Enterprise Products Partners, which has seen its fortune more than double since 2010 [57] Group 15 - The Cathy family, with a net worth of $33.6 billion, operates Chick-fil-A, which remains family-owned and has seen significant growth [59] - The SC Johnson family, with a net worth of $38.5 billion, produces well-known cleaning products and is led by fifth-generation family members [61] Group 16 - The Pritzker family, with a net worth of $41.6 billion, founded Hyatt Hotels and has been involved in various investments and political activities [63] - The Johnson family, with a net worth of $44.8 billion, controls Fidelity, one of the largest mutual-fund companies, generating over $32 billion in revenue in 2024 [66] Group 17 - The Cargill-MacMillan family, with a net worth of $60.6 billion, owns 88% of Cargill Inc., which generated over $160 billion in revenue in 2024 [68] - The Koch family, with a net worth of $116 billion, expanded their father's oil-refinery firm into a conglomerate generating roughly $125 billion in annual revenue [70] Group 18 - The Mars family, with a net worth of $117 billion, operates Mars Inc., which generated over $50 billion in revenue in 2024 [73] - The Walton family, with a net worth of $267 billion, founded Walmart, which reported $648.1 billion in revenue in 2024, making it the largest retailer globally [75]

Core Viewpoint - Illinois Tool Works (NYSE: ITW) recently reported its Q3 earnings, prompting a detailed analysis of the numbers and outlook, suggesting that the company may not be a favorable investment opportunity at this time [1]. Financial Performance - The Q3 earnings report from Illinois Tool Works includes specific financial metrics that warrant further examination to understand the company's performance and future potential [1]. Investment Strategy - The investment approach discussed emphasizes a long-term horizon, typically between 5 to 10 years, focusing on a balanced portfolio that includes growth, value, and dividend-paying stocks, with a particular inclination towards value investments [1].

Core Insights - Illinois Tool Works Inc. reported mixed third-quarter fiscal 2025 results, with revenue of $4.06 billion, a 2.3% year-over-year increase, but below the expected $4.08 billion [1] - The company narrowed its full-year 2025 GAAP EPS guidance to $10.40-$10.50, aligning with consensus, and projected full-year sales between $16.057 billion and $16.375 billion [2] - The company achieved an EPS of $2.81, a 6% year-over-year growth excluding divestiture gains, and recorded an operating margin of 27.4% alongside a 15% increase in free cash flow [3] Financial Performance - Revenue increased by 2.3% year-over-year to $4.06 billion, missing analyst expectations [1] - Organic revenue growth was reported at 1% year-over-year for the quarter [1] - Earnings per share (EPS) were $2.81, compared to $3.91 a year ago, exceeding the consensus estimate of $2.71 [1] Guidance and Projections - Full-year 2025 GAAP EPS guidance was tightened to $10.40-$10.50 from a previous range of $10.35-$10.55 [2] - Projected full-year sales for 2025 are between $16.057 billion and $16.375 billion, slightly below the consensus of $16.076 billion [2] Market Reaction - Following the earnings announcement, Illinois Tool Works shares rose by 1.1% to $248.45 [4] - Analysts adjusted their price targets, with a consensus rating of "Hold" and a consensus price target of $253.29 [5] Analyst Ratings - Wells Fargo maintained an Underweight rating and lowered the price target from $250 to $245 [7] - Truist Securities maintained a Hold rating and reduced the price target from $298 to $275 [7] - Barclays also maintained an Underweight rating, raising the price target from $243 to $244 [7]

Core Insights - Illinois Tool Works Inc. reported mixed third-quarter fiscal 2025 results, with revenue of $4.06 billion, a 2.3% year-over-year increase, but below the expected $4.08 billion [1] - The company narrowed its full-year 2025 GAAP EPS guidance to $10.40-$10.50, aligning with consensus, and projected sales between $16.057 billion and $16.375 billion [2] - The CEO highlighted a record operating margin of 27.4% and a 15% increase in free cash flow, indicating strong operational execution [3] Financial Performance - Revenue increased by 2.3% year-over-year to $4.06 billion, missing analyst expectations [1] - Earnings per share (EPS) were reported at $2.81, down from $3.91 a year ago, but above the consensus estimate of $2.71 [1] - The company achieved a record operating margin of 27.4% and a 15% increase in free cash flow [3] Guidance and Projections - Full-year 2025 GAAP EPS guidance was tightened to $10.40-$10.50 from a previous range of $10.35-$10.55 [2] - Projected full-year 2025 sales are between $16.057 billion and $16.375 billion, slightly below the consensus of $16.076 billion [2] Market Reaction - Following the earnings announcement, Illinois Tool Works shares rose by 1.1% to $248.45 [4] - Analysts adjusted their price targets, with a consensus price target of $253.29, the highest at $295.00, and the lowest at $181.00 [5] Analyst Ratings - Wells Fargo maintained an Underweight rating and lowered the price target from $250 to $245 [7] - Truist Securities maintained a Hold rating and reduced the price target from $298 to $275 [7] - Barclays also maintained an Underweight rating, raising the price target from $243 to $244 [7]