The company's average rating is Hold from 14 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Illinois Tool market sentiment investors' perception of the future value of Illinois. Let us look at a few aspects of Illinois technical analysis.
Using predictive
technical analysis, we can analyze different prices and returns patterns and
diagnose historical swings to determine the real value of Illinois Tool Works. In general, sophisticated investors focus on analyzing Illinois Tool stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Illinois Tool's daily price indicators and compare them against related drivers such as
momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional
technical analysis and
fundamental analysis, we attempt to find the most accurate representation of
Illinois Tool's intrinsic value. In addition to deriving basic predictive indicators for Illinois Tool, many experienced traders also check how macroeconomic factors affect Illinois Tool price patterns. Please read more on our
technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Illinois Tool's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Illinois Tool. Your research has to be compared to or analyzed against Illinois Tool's peers to derive any actionable benefits. When done correctly, Illinois Tool's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Illinois Tool Works.
How does Illinois Stands against Peers?
Analyzing Illinois Tool competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to Illinois Tool across multiple sectors and
thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be. Check out
Illinois Tool Competition DetailsIllinois Tool Gross Profit
Illinois Tool Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Illinois Tool previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Illinois Tool Gross Profit growth over the last 10 years. Please check Illinois Tool's
gross profit and other
fundamental indicators for more details.
Closer look at Illinois Tool Variance
Illinois Tool Works has current Variance of 1.86. Variance is another measure of security risk that shows the amount of dispersion of equity returns around their mean value. Variance is calculated as the average squared deviations from the mean. Evaluating a set of investment alternatives one can use variance to help determine the volatility when purchasing a specific security. Similar to Standard Deviation, the variance is a measure of how far a set of numbers is spread out around its mean.
Variance is also a measure of stock volatility and can help determine the risk an investor might take on when purchasing a specific security. A relatively big variance indicates that the daily prices or returns are far from the mean and a small variance indicates that they are located around the mean.
Variance | = | SUM(RET DEV)2 N |
| = | 1.86 |
| SUM | = | Summation notation |
| RET DEV | = | Actual returns deviation over selected period |
| N | = | Number of points for the period |
Let's now compare Illinois Tool Variance to its closest peers:
| ITW | 1.8600364681780273 |
| B | 10.78 |
| CR | 7.87 |
| CW | 7.36 |
| GE | 5.32 |
Another 3 percent climb for Illinois Tool
Skewness is down to 0.4. It may cause a possible volatility fall. As of the 5th of February, Illinois Tool retains the Risk Adjusted Performance of 0.0125,
downside deviation of 1.26, and Market Risk Adjusted Performance of 0.0134. Illinois Tool
technical analysis makes it possible for you to employ
historical prices and volume momentum with the intention to determine a pattern that calculates the direction of the firm's future prices. Simply put, you can use this information to find out if the firm will indeed mirror its model of historical price patterns, or the prices will eventually revert. We were able to interpolate nineteen
technical drivers for Illinois Tool Works, which can be compared to its competitors. Please check out
Illinois Tool Works coefficient of variation,
maximum drawdown, as well as the
relationship between the Maximum Drawdown and
skewness to decide if Illinois Tool is priced fairly, providing market reflects its last-minute price of 202.12 per share. Given that Illinois Tool Works has
jensen alpha of
(0.22), we strongly advise you to confirm Illinois Tool Works's regular market performance to make sure the company can sustain itself at a future point.
The Current Takeaway on Illinois Tool Investment
While some companies in the specialty industrial machinery industry are either recovering or due for a correction, Illinois Tool may not be performing as strong as the other in terms of long-term growth potentials. With a less-than optimistic outlook for your 30 days horizon, it may be a good time to exit some or all of your Illinois Tool holdings as it seems the potential growth was already fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Illinois Tool.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of Illinois Tool Works. Please refer to our
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