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Illinois Tool Works Inc. (ITW), headquartered in Glenview, Illinois, produces and sells industrial products and equipment. Valued at $77.9 billion by market cap, the company provides industrial fluids and adhesives, tooling for specialty applications, welding products, and quality measurement equipment and systems.
Shares of this global multi-industry manufacturing leader have underperformed the broader market over the past year. ITW has gained 3.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 23%. However, in 2025, ITW stock is up 4.7%, surpassing SPX’s 4% rise on a YTD basis.
Narrowing the focus, ITW’s underperformance is also apparent compared to iShares U.S. Industrials ETF (IYJ). The exchange-traded fund has gained about 17.9% over the past year. However, ITW’s returns on a YTD basis outshine the ETF’s 3.8% gains over the same time frame.
On Feb. 5, ITW shares closed down marginally after reporting its Q4 results. Its EPS of $2.54 surpassed Wall Street expectations of $2.49. The company’s revenue was $3.9 billion, beating Wall Street forecasts of $4 billion. For fiscal 2025, ITW expects its full-year EPS to be between $10.15 and $10.55.
For fiscal 2025, ending in December, analysts expect ITW’s EPS to grow 2.4% to $10.39 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 17 analysts covering ITW stock, the consensus is a “Hold.” That’s based on three “Strong Buy” ratings, 11 “Holds,” and three “Strong Sells.”
This configuration is less bearish than a month ago, with four analysts suggesting a “Strong Sell.”
On Feb. 19, Evercore ISI analyst David Raso maintained a “Sell” rating on ITW with a price target of $252.
The mean price target of $266.53 represents a marginal premium to ITW’s current price levels. The Street-high price target of $302 suggests an upside potential of 13.7%.
