Home / Daily News / Illinois Tool Works Inc. (NYSE:ITW): Shares in the Hotbed

 

Investors are constantly trying to gain any little advantage when studying potential stocks to add to the portfolio. Keeping close tabs on Wall Street analyst price targets may help investors stay tuned in to current sentiment. After a recent check, we have noted that Illinois Tool Works Inc. (NYSE:ITW) has an average target price of 157.67. Even though professional analysts may have better information about a certain company, investors may need to proceed with caution when it comes to following price targets. Price targets are essentially educated guesses on what will happen with the stock price going forward. Investors who buy or sell strictly on analyst targets may be banking on analysts being correct about their projections. Although this strategy may work out more often than not, investors may be better served to conduct their own research and then use price target estimates as a comparison tool.

Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with MarketBeat.com's FREE daily email newsletter.

Investors might be looking high and low for quality stocks that have fallen out of favor with the investing community. There are plenty of stocks that get continuous coverage from the big media outlets, but there are many others that may be hiding behind the scenes. Conducting thorough stock research can help the investor isolate certain stocks that might be ready for a near-term bounce. With the stock market still trading near record levels, investors will be looking for any opportunity to pounce on shares that might have been left behind for whatever reason.   

Investors may be sizing up shares of Illinois Tool Works Inc. (NYSE:ITW). After a recent check, we see that the current quarter EPS consensus estimate provided by Zacks is standing at 1.86. This EPS estimate is comprised of 8 sell-side analysts polled by Zacks. For the last reporting period, the company posted a quarterly EPS of 2.04. Analysts and investors will be closely studying the next round of company earnings reports. Consistent success on the earnings front may point to the company moving in the right direction. On the flip side, a company that has strung together a few bad quarters may ring the warning bells for interested investors.

Investors have the ability to follow Wall Street analyst views when conducting stock research. Sell-side analysts often put in a lot of time trying to evaluate the inner workings of a company. They may dig through the financials, conduct interviews, and pay keen attention to conference calls in order to compile data for the research report. Many analysts will offer buy, sell, or hold recommendations for stocks they cover. Checking on shares of Illinois Tool Works Inc. (NYSE:ITW), we see that the current average broker rating is 2.89. This average rating falls on a scale from 1 to 5 where a 1 would indicate a Strong Buy. On the flip side, a 5 rating would signify a Strong Sell. Based on data provided by Zacks, there are currently 4 polled analysts rating the stock a Strong Buy or Buy. Investors often have to decide whether they are in agreement with how the analysts perceive the future prospects of a specific stock.

When it comes to the stock market, many traders rely on technical analysis to identify trades. With technical analysis, it is generally believed that stock price movements follow trends. When the trend is determined, the thought is that price movements in the future are more likely to go in the same direction as the trend, and not against it. Another aspect of technical analysis is the idea that history tends to repeat itself especially regarding the movement of the stock’s price. Technical analysts will use chart patterns to help study market moves and identify these trends. Some traders will use highly complex charts while others may only follow a few major indicators.                  
Following recent trading activity on shares of Illinois Tool Works Inc. (NYSE:ITW), we can see that the stock has been hovering near the 172.08 price level. Shareholders might be asking themselves whether now is a good time to buy or sell the stock. Over the previous 12 weeks, the stock has moved 11.95%. Looking back over the last month, shares have moved -1.95%. Over the previous week, the stock has changed -1.77%. Investors may also be watching the current price in relation to the 52-week highs/lows. After a recent scan, we note that the 52-week high is presently 177.55, and the 52-week low is 118.95.

Investors can employ various techniques in order to study stocks. Two of the most widely used techniques are fundamental and technical analysis. Fundamental analysis includes crunching the numbers for specific companies. This may involve reviewing the cash flow statement, income statement, and balance sheet. In essence, fundamental analysts are trying to figure out the company’s value. Once the value of a company is determined, the investor can then make investment decisions based on the research. Using this method, a stock that is trading underneath the intrinsic value may be considered a good pick. Technical traders typically hold the view that all the data they need to know about a stock can be discovered to using charts.

 
Share this page