Illinois Tool Works Stock: Is ITW Underperforming the Industrial Sector?

ITW +0.36% XLI +0.87%

Illinois Tool Works Inc. (ITW), headquartered in Glenview, Illinois, manufactures engineered fasteners, components, equipment, consumables, and specialty products for diverse industries.

Its operations cover automotive OEM, welding, food equipment, test and measurement, polymers and fluids, construction products, and specialty segments across more than 50 countries. The company has a market capitalization of $72.32 billion, which classifies it as a “large-cap” stock.

More News from Barchart

• 1 Penny Stock Wall Street Predicts Will Soar More Than 450% in 2026

• Netflix is Still Cheap Here - Shorting Out-of-the-Money Puts Works Well

• Powell, PCE and Other Key Thing to Watch this Week

• Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines.

ITW’s stock had reached a 52-week low of $214.66 in April, but is up 16.1% from that level. Due to weaker-than-expected topline results, the stock is down 6.2% over the past three months. On the other hand, the Industrial Select Sector SPDR Fund (XLI) has gained marginally over the same period.

Over the longer term, this underperformance persists. The stock has declined 9.7% over the past 52 weeks but gained 2.2% over the past six months. The Industrial Select Sector ETF has gained 7.3% and 7.8% over the same periods, respectively. ITW’s stock has been trading below its 200-day moving average since late October and is currently hovering near its 50-day moving average.

On Oct. 24, ITW reported mixed third-quarter 2025 results. The company’s operating revenue grew modestly by 2.3% year-over-year (YOY) to $4.06 billion, missing the $4.08 billion estimate from Wall Street analysts.

ITW’s bottom-line financials receded. Its net income per share dropped 28.1% annually to $2.81. However, this exceeded the Wall Street analysts’ estimate of $2.69. On the other hand, ITW also noted that excluding the divestiture gains in the prior year’s period of $1.26, EPS grew 6% YOY. ITW’s stock dropped 4.5% intraday on Oct. 24.

We compare ITW’s performance with that of another specialty industrial machinery company, Emerson Electric Co. (EMR), which has climbed marginally over the past 52 weeks and gained 11.4% over the past six months. Therefore, ITW has underperformed Emerson Electric over these periods.

Wall Street analysts are tepid on ITW’s stock. The stock has a consensus rating of “Hold” from the 17 analysts covering it. The mean price target of $263 indicates a 5.5% upside compared to current levels. Moreover, the Street-high price target of $287 indicates a 15.1% upside.

On the date of publication, Anushka Mukherjee did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com