Hedgeye CEO Keith McCullough is adding Illinois Tool Works (ITW) to the short side of Investing Ideas. Below is a brief note.
New one for you here with Industrials analyst Jay Van Sciver saying short Illinois Tool Works (ITW). Crazy low short interest in this name and, remember, I want to short what consensus still owns...
Here's a summary note from Jay on the downside:
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ITW looks to be at risk of a sizeable 2020 reset on consensus estimates, with very optimistic justifications focusing on bailout (‘cash for clunkers again’) and other stimulus measures. We see 30% relative downside in shares of ITW, a name that every few years gets re-rated as a mediocre, discounted conglomerate. We estimate the 2Q20 EPS will have a fun rate of roughly half current 2020 consensus. |
Short the bounce to lower-highs,
KM
