Here's How Much a $1000 Investment in Illinois Tool Works Made 10 Years Ago Would Be Worth Today
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Illinois Tool Works (ITW) ten years ago? It may not have been easy to hold on to ITW for all that time, but if you did, how much would your investment be worth today?
Illinois Tool Works' Business In-Depth
With that in mind, let's take a look at Illinois Tool Works' main business drivers.
Headquartered in Glenview, IL, Illinois Tool Works Inc. is a worldwide manufacturer of highly engineered products and specialty systems. The company's diversified range of industrial products and equipment are sold in multiple countries. The company operates through seven operating business segments. A brief discussion is given below:
Test & Measurement and Electronics: This segment deals with the production of equipment, consumables and related software for testing and measuring materials and structures, and equipment and consumables used in the production of electronic subassemblies and microelectronics. Products are mainly used in automotive original equipment manufacturers and tiers, general industrial, consumer durables and other markets.
Automotive OEM: This segment produces fasteners and components for automotive-related applications. Products are mainly used by original equipment manufacturers in the automotive industry.
Polymers & Fluids: This segment produces lubrication and cutting fluids, sealants, janitorial and hygiene products, adhesives, and fluids and polymers. It serves customers in general industrial, automotive aftermarket and other markets.
Food Equipment: This segment is responsible for production and offering of commercial food equipment and related services. Customers mainly belong to restaurant, food retail and food service markets.
Welding: This segment manufactures arc welding equipment, consumables and accessories. Products are mainly used in general industrial, fabrication, energy, construction, industrial capital goods, and other markets.
Construction Products: This segment produces construction-fastening systems and truss products for commercial construction, residential construction and renovation markets.
Specialty Products: This segment produces product coding and marking equipment and consumables, beverage packaging equipment and consumables, and appliance components and fasteners.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Illinois Tool Works ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in February 2013 would be worth $3,795.26, or a 279.53% gain, as of February 16, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 172.91% and gold's return of 7.92% over the same time frame.
Analysts are forecasting more upside for ITW too. Illinois Tool is benefiting from strength across the capital equipment and industrial businesses. Continued strength in industrial applications and automotive aftermarket construction end-markets bode well for the company. For 2023, it expects revenues of $16.2-$16.5 billion. The midpoint of the guided range of $16.35 million implies a 2.8% jump from the 2022 figure of $15.9 billion. Organic revenues are estimated to climb 3-5% in the year. Its consistent measures to reward its shareholders raise its appeal. However, supply-chain disruptions and raw material cost inflation are hurting the company’s operations. Reduced demand in the appliance components division, within the Specialty products segment, is concerning. Slowdown in construction, commercial welding and semiconductor end market is expected to impact its performance in 2023. Foreign currency woes are also worrisome. The stock is up 5.38% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 7 higher, for fiscal 2023. The consensus estimate has moved up as well.
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Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report
