SA Articles: Illinois Tool Works & Urban Outfitters

Take Gains In Illinois Tool Works Or Hold On For More?

Summary

• Illinois Tool Works has posted heavy gains, with its shares now trading at a 52-week high.
• Investors like to sell stocks when they reach their highest level.
• The company’s dividends are safe and its fundamentals are strong.
• You can make gains by selling this stock, but holding it longer could lead to major profits.

Illinois Tools Work (NYSE:ITW) has posted massive gains recently. Over the last thirty trading sessions, the company's stock price soared, gaining nearly 6% in the last month alone. It has grown by more than 9% since the start of the year. In addition, ITW's share price has remained resilient against headwinds that have brought similar companies to their knees, leading them to slash dividends amid a liquidity crisis.

ITW is immune from such headwinds. It carries minimal exposure to the volatile energy sector. The company is a manufacturer of industrial products and equipment; its business segments include Test and Measurement, Automotive OEM, Electronics, Polymers and Fluids, Welding, Construction Products, and Specialty Products. Above all, the company has a very attractive 80/20 business model... READ MORE



Urban Outfitters: A Hold For Now But Watch The Comps

Summary

• URBN can improve its gross margins in 2016.
• URBN’s earnings quality has improved.
• URBN’s shares have a fair value of around $36, representing an upside of 6.8%.

2015, in many ways, wasn't a great year for shareholders of Urban Outfitters (NASDAQ:URBN). In retrospect, March 2015 might be seen as a missed selling opportunity by many as URBN's shares reached an unprecedented $47 at one point during that month. It's been almost a year since then and shares have declined by no less than 29% despite an incredible run following Q4 2016 results. This sounds a bit depressing but the good news is that URBN's rather weak stock price performance doesn't accurately capture the strengths and opportunities associated with the company's underlying business. Yet I am neutral on URBN... READ MORE