Wall Street is not only a "what have you done for me lately" type of place, it also often likes to project ahead to the next problem to come. So while Illinois Tool Works (NYSE:ITW) is offering the sort of growth that investors would love to see from Dover (NYSE:DOV), 3M (NYSE:MMM), or Honeywell (NYSE:HON), the emphasis among some analysts seems to be on whether the company has already hit peak margins and/or whether the company is being too stingy with its M&A practices.
I still think Illinois Tool Works is a high-quality company, and I've been impressed with the growth that the company has managed since my last update - very, very few large-cap industrials have seen their organic revenue growth accelerate as 2016 has gone on, and margins continue to expand. I do think the valuation is pretty full now, but I freely admit that Illinois Tool Works has been exceeding my own expectations.
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Illinois Tool Works Delivering On The Growth Angle