Is It Time to Buy Illinois Tool Works Stock?

It's not easy writing this article, not least because it runs contrary to an investor's intuitive sense. Investors always want to take an interest in high-quality companies with exceptional management, but there's a difference between a great company and a great stock to buy. Illinois Tool Works (NYSE: ITW) is definitely the former, but is it the latter? Let's take a closer look.

In a nutshell, the valuation of the company isn't adequately compensating investors for the risk involved in holding the stock. The company has strong potential to recover from the COVID-19 pandemic, and its management continues to do a great job of expanding operating underlying margin in the face of difficult end markets, but all of the goodness appears to be baked into the price already.

Illinois Tool Works is one of the best-run companies in the industrial sector. Image source: Getty Images.

Source Fool.com