Are Wall Street Analysts Bullish on Illinois Tool Works Stock?

Kritika Sarmah Barchart Thu May 22, 6:25AM CDT
Illinois Tool Works, Inc_ logo and phone-by IgorGolovniov via Shutterstock

Illinois Tool Works Inc. (ITW), headquartered in Glenview, Illinois, produces and sells industrial products and equipment. Valued at $73.2 billion by market cap, the company provides industrial fluids and adhesives, tooling for specialty applications, welding products, and quality measurement equipment and systems.

ITW shares have underperformed the broader market over the past year. ITW has declined 1.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 9.8%. In 2025, ITW stock is down 3.5%, compared to $SPX’s marginal dip.

Narrowing the focus, ITW has also trailed the iShares U.S. Industrials ETF (IYJ). The exchange-traded fund has gained about 10.3% over the past year and 2.5% on a YTD basis.

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On April 30, Illinois Tool Works reported its Q1 2025 earnings, posting an EPS of $2.38, which surpassed analysts' expectations of $2.34. Despite this earnings beat, the company's stock declined by 4%.

The share price decline was driven by a revenue miss, with Q1 sales down 3.4% year-over-year to $3.8 billion, impacted by weaker organic growth and currency headwinds. Operating margin also dropped to 24.8% from 28.4% a year earlier due to higher restructuring costs. Ongoing economic uncertainty, inflation, and tariff concerns further dampened investor sentiment, overshadowing the earnings beat.

Nevertheless, for the current year ending in December, analysts expect ITW’s EPS to grow 1.1% to $10.26 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.

Among the 17 analysts covering ITW stock, the consensus is a “Hold.” That’s based on three “Strong Buy” ratings, 10 “Holds,” one “Moderate Sell,” and three “Strong Sells.”

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On May 19, Evercore ISI Group analyst David Raso lowered the price target for Illinois Tool Works from $252 to $249, while maintaining an "Underperform" rating. 

The mean price target of $249.60 represents a 2% premium to ITW’s current price levels. The Street-high price target of $284 suggests an upside potential of 16.1%.


On the date of publication, Kritika Sarmah 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. For more information please view the Barchart Disclosure Policy here.