ITW: Premium Multiple, But Growth And Cash Flow Make A Convincing Long Trade
Illinois Tool Works (ITW) is trading at a premium P/E and very high price-to-book, but its latest quarter showed revenue growth, margin expansion and robust free cash flow. This trade idea takes a long view: buy near $282.97 with a $265 stop and a $310 target, betting that continued margin improvement, durable cash conversion and buybacks will driv…