Illinois Tool Works Inc. (ITW) - Stock Analysis

Last updated: Jul 27, 2026

Research Idea

Research content for general circulation. Not individualized advice. Methodology & Disclosures

Q2 2026 was a positive catalyst on 2026-07-28, with earnings and revenue beating estimates and full-year guidance raised again. The stock is up about 8.7% since 2026-07-02, trades above short-term averages, and benefits from improving manufacturing sentiment.

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Idea window: 7/28/2026 – 8/4/2026Sector: Industrials

AI Analyst Overview

Last Price
$296.73
Market Cap
$72.53B
1D Return
+4.18%
YTD Return
+21.97%

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Valuation Metrics

P/E
23.2
P/B
22.5
P/S
4.5
EV/EBITDA
17.6
Div Yield
2.51%

Price Behavior

6.0

Key Price Behavior Insights: • Higher highs • Support defended • Overbought breakout Support Level: $271-$272; stronger support at $265-$266 Resistance Level: 2026-07-24 high (breakout must hold) ITW has risen about 5% over the last month to a new high, with buyers defending $271-$272 and stronger support at $265-$266, but the choppy, overbought breakout still needs confirmation above the recent high.

bullish
breakout

Sentiment & News

6.0

Key News Insights: • Earnings beat hopes • Margin expansion • Valuation scrutiny ITW heads into Q2 earnings with constructive beat expectations and solid operational momentum, but soft organic demand, currency help, and a rich valuation keep the outlook mixed.

earningspreview
valuationwatch
AI

AI Summary

6.0
Neutral

ITW remains a strong margin-driven industrial compounder, but the stock is now priced for near-perfect execution, so upside likely requires continued EPS and guidance beats without relying on FX, while any merely “good” quarter could trigger valuation compression.

Quality
Valuation
Execution
AI summary updated 1 days ago

Description

Illinois Tool Works Inc. manufactures and distributes a wide range of industrial products and equipment worldwide through seven reporting segments that supply components, consumables, machinery and related services to automotive, foodservice, construction, electronics and general industrial customers. The company sells directly to manufacturers and through independent distributors and serves end markets including automotive OEMs and tiers, commercial food equipment, construction, and the automotive aftermarket. Founded in 1912, Illinois Tool Works is headquartered in Glenview, Illinois.

Idea History

DateCloseTickerCompanySummaryStatusP/L
Jul 28Aug 4ITWIllinois Tool Works Inc.
Q2 2026 was a positive catalyst on 2026-07-28, with earnings and revenue beating estimates and full-year guidance raised again. The stock is up about 8.7% since 2026-07-02, trades above short-term averages, and benefits from improving manufacturing sentiment.
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Research content for educational purposes only. Not investment advice. All decisions are your responsibility.