Friday, February 8, 2019

Weak Growth And Robust Expectations Create Headwinds For Illinois Tool Works

Quality is all well and good, and Illinois Tool Works (ITW) certainly has that, but growth and margin leverage tends to drive share price performance and ITW looks to be in shorter supply where those are concerned. Meaningful exposure to softer end-markets like auto, “general industrial”, non-residential construction, and electronics are headwinds to me, and I’m not sure there’s a lot that ITW management can do to repeat the meaningful past improvements in operating margins. On top of all that, the valuation is not all that cheap at this point.

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Weak Growth And Robust Expectations Create Headwinds For Illinois Tool Works

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