Glenview-based Illinois Tool Works Inc. (ITW) operates as a global manufacturer of a diversified range of industrial products and equipment. With a market cap of $71.9 billion, the company operates through Automotive OEM, Food Equipment, Test & Measurement and Electronics, Welding, Polymers & Fluid, Construction Product, and Specialty Products segments.

Companies worth $10 billion or more are typically referred to as "large-cap stocks." Illinois Tool Works fits this bill perfectly, showcasing its substantial size, influence, and dominance in the industrial sector.

ITW touched its all-time high of $279.13 on Nov. 27, 2024 and has plunged 11.7% since. Over the past three months, ITW stock has dropped 3.5%, lagging behind the Nasdaq Composite’s ($NASX) 6.4% surge during the same time frame.

ITW’s performance has remained grim over the longer term as well. The stock has dropped 2.8% on a YTD basis and gained 2.4% over the past 52 weeks, underperforming Nasdaq’s marginal 78 bps uptick in 2025 and 15.4% surge over the past year.

To confirm the downtrend, ITW stock has remained below its 200-day moving average since late March and traded mostly below its 50-day moving average since early March, with some fluctuations in recent weeks.

Illinois Tool Works’ stock prices observed a marginal dip after the release of its disappointing Q1 results on Apr. 30. Due to a notable drop in organic sales, the company’s overall topline for the quarter declined 3.4% year-over-year to $3.8 billion, missing the Street’s expectations by a thin margin. Despite the drop in sales, ITW observed an increase in COGS and SG&A, which dampened its profitability. Its net income for the quarter declined 14.5% year-over-year to $700 million.

Moreover, the stock has significantly underperformed its peer, Parker-Hannifin Corporation’s (PH) 4.6% gains on a YTD basis and 29.8% surge over the past 52 weeks.

Among the 17 analysts covering the ITW stock, the consensus rating is a “Hold.” Its mean price target of $249.60 suggests a modest 1.3% uptick from current price levels.