10 Best Industrial Machinery Stocks to Buy Now

7. Illinois Tool Works Inc. (NYSE:ITW)

Number of Hedge Fund Investors: 43 

Illinois Tool Works Inc. (NYSE:ITW) produces and markets industrial equipment and goods both domestically and abroad. Automotive OEM, Food Equipment, Test & Measurement and Electronics, Welding, Polymers & Fluids, Construction Products, and Specialty Products are its seven business segments. The company was established in 1912 and, through innovations and acquisitions, has grown into a diversified industrial firm that responds to consumer demands.

Illinois Tool Works Inc. (NYSE:ITW) has a long history of providing investors with healthy returns. The company has respectable financial metrics, including a growing revenue per share figure, a stable gross profit margin, and a growing return on invested capital. Dividend growth has slowed recently but is still high enough to outpace inflation, as per analysts.

Barclays raised its price target on Illinois Tool Works Inc. (NYSE:ITW) from $215 to $230. In a research note, the analyst informed investors that the company “is hitting its stride again on Enterprise Initiatives, while CBI may be showing some signs of life,” based on the earnings performance and outlook.

In Q3 2024, Illinois Tool Works Inc. (NYSE:ITW) raised its dividend by 7% to $6.00 per share annually and repurchased $375 million worth of shares. Moreover, the company raised its full-year GAAP EPS outlook by $1.33 to a range of $11.63 to $11.73 per share.

Tom Gayner’s Markel Gayner Asset Management was the company’s largest stakeholder at the end of Q2 2024, as per Insider Monkey’s database. It owns 327,500 shares worth $85.828 million as of Q2.