Here's How Much You'd Have If You Invested $1000 in Illinois Tool Works a Decade Ago
How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and 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 takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Illinois Tool Works a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in November 2012 would be worth $3,867, or a gain of 286.70%, as of November 17, 2022, according to our calculations. This return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 191.11% and the price of gold went up -0.46% over the same time frame.
Analysts are anticipating more upside for ITW.
Illinois Tool is benefiting from strength across the semiconductor and industrial businesses, solid equipment and consumables manufacturing operations. Continued strength in industrial applications, construction, U.S. residential and commercial end-markets bode well for the company. For 2022, the company expects revenues to increase 9-10%. Organic revenues are estimated to climb 11-12% in the year. Illinois Tool’s consistent measures to reward its shareholders raise its appeal. However, supply chain disruptions and raw material cost-inflation are hurting the company’s operations. The company expects a 100-basis point negative impact from price/cost on its operating margin in 2022. Reduced demand in the appliance components division, within the Specialty products segment is concerning. Foreign currency woes are also worrisome.
The stock has jumped 18.60% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 6 higher, for fiscal 2022; the consensus estimate has moved up as well.
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Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report
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