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If You Invested $1000 in Illinois Tool Works a Decade Ago, This is How Much It'd Be Worth Now
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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Illinois Tool Works (ITW - Free Report) 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
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Illinois Tool Works, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in June 2013 would be worth $3,530.61, or a 253.06% gain, as of June 19, 2023, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 171.07% and the price of gold went up 39.08% 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 institutional end markets and oil and gas business bodes well for the company. For 2023, the company expects revenues to increase 2-4% year over year. Organic revenues are estimated to climb 3-5% in the year. The company’s consistent measures to reward its shareholders through dividends and share buybacks are encouraging. However, supply-chain disruptions and raw material cost inflation are hurting the company’s operations. Reduced demand in the appliance components division is concerning. Adverse foreign currency movements add to the woes of the company. Illinois Tool’s weak liquidity position is also worrisome. Due to these headwinds, shares of the company have underperformed its industry so far this year.
Over the past four weeks, shares have rallied 8.75%, and there have been 8 higher earnings estimate revisions in the past two months for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.
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If You Invested $1000 in Illinois Tool Works a Decade Ago, This is How Much It'd Be Worth Now
How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Illinois Tool Works (ITW - Free Report) 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
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Illinois Tool Works, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in June 2013 would be worth $3,530.61, or a 253.06% gain, as of June 19, 2023, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 171.07% and the price of gold went up 39.08% 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 institutional end markets and oil and gas business bodes well for the company. For 2023, the company expects revenues to increase 2-4% year over year. Organic revenues are estimated to climb 3-5% in the year. The company’s consistent measures to reward its shareholders through dividends and share buybacks are encouraging. However, supply-chain disruptions and raw material cost inflation are hurting the company’s operations. Reduced demand in the appliance components division is concerning. Adverse foreign currency movements add to the woes of the company. Illinois Tool’s weak liquidity position is also worrisome. Due to these headwinds, shares of the company have underperformed its industry so far this year.
Over the past four weeks, shares have rallied 8.75%, and there have been 8 higher earnings estimate revisions in the past two months for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.