Not all Big Tech is sexy. ITT provides a variety of highly engineered products to most major markets including automotive, rail, chemical, industrial, aerospace/defense and more. But there's not a single AI chip in the mix. Instead ITT provides a host of essential products that keep industries moving.
On Thursday the IBD Relative Strength (RS) Rating for ITT stock got an upgrade to 81, up from 78 the day before. The upgrade pushes ITT stock above a key benchmark. Market research shows that the market's biggest winners typically have an RS Rating north of 80 as they launch their biggest runs.
It's slated to report earnings on Oct. 29.
ITT's Earnings Rating Shines
Among its other ratings ITT has a terrific 90 EPS Rating out of 99 and a decent 82 Composite Rating. Reflecting its strong fundamentals, the diversified equipment maker has a best-possible A SMR Rating (sales+ profit margins + return on equity).
One yellow flag is its D Accumulation/Distribution Rating on an A+ to E scale with A+ tops and E weak. The D rating shows that big funds are selling more shares than buying. Look for that to improve to a C or better.
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ITT makes a wide variety of products including things like pumps, shock absorbers and other energy absorbing products via brands such as KONI shock absorbers, Cannon connectors and ITT Aerospace Controls. It sells them in 125 countries.
ITT stock broke out earlier, but is now trading around 4% below the prior 149.65 entry from a consolidation. It roughly doubled in 17 months, from a 75.82 close on May 31, 2023 to a 153.99 high on Oct. 15 this month. That was also its all-time intraday high.
From there, ITT has consolidated. It traded at about 143 Thursday afternoon, down less than 1% for the day but on track for its eighth lower close in a row, and testing its 50-day support line. Also please note that the most recent pattern is a later-stage base, and such bases can succeed but are riskier than early stage bases.
Solid Earnings, Revenue Growth
The Stamford, Conn.-based company posted 12% earnings growth last quarter to $1.49 per share. Revenue rose 9% to $905.9 million. ITT says on its website it will release third quarter results before the market opens on Oct. 29.
The company holds the No. 10 rank among its peers in the 52-stock Machinery-General Industrial industry group. SPX Technologies, Energy Recovery and Badger Meter are among the top 5 highly rated stocks in the group.
IBD's proprietary Relative Strength Rating identifies technical performance by using a 1 (worst) to 99 (best) score that indicates how a stock's price action over the last 52 weeks matches up against other publicly traded companies.
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