Tuesday, March 2, 2021

ITT Executing Well, But The Bull Case Has Become The Base Case

As a shareholder, I can’t really complain about the performance of ITT (ITT) over the last few months. I liked ITT better on a relative value basis to names like Dover (DOV), Eaton (ETN), Emerson (EMR), and Parker Hannifin (PH) back in November, and ITT shares have outperformed that group, as well as outperforming the broader industrial space by more than 15%.

All good things come to an end, and so too with ITT being a standout value/GARP option in the industrial space. I still like ITT operationally, and I’m still bullish on under-appreciated opportunities in auto, control technologies, and process, as well as margin improvement potential and M&A optionality. Still, I feel like more of this is recognized in the share price now. ITT shares still offer a better-than-average total return potential, but it’s not a name I can pound the table as hard for as before.

 

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ITT Executing Well, But The Bull Case Has Become The Base Case

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