Is Now The Time to Buy Illinois Tool Works? (ITW)

When the "players" in the world of manufacturing are brought up, names like 3M

, General Electric

, and Tyco

come to mind. For those looking for under-the-radar stocks, one might consider Illinois Tool Works

. Illinois Tool Works is a multinational manufacturer of a diversified range of industrial products and equipment. The company has an enormous arsenal of subsidiaries, employs nearly 60,000 people, and enjoyed profits of $1 billion in 2009. Notably, the company holds over 20,000 patents as of 2007, and typically ranks in the top 100 of patent issuers in the United States. The stock has retreated from March highs of $52 this summer, but appears to be poised to break higher. Importantly, the stock wasn't able to break to new lows in late July, and has since rallied to above $46. As of June 30th, Illinois Tool Works has more than $1.2 billion in cash and cash equivalents, which the company can utilize to acquire new companies and expand R&D. This stock may be a great chance to buy a Midwestern company that has ample upside potential. Shares of Illinois Tool Works are down 1.5% this afternoon, to $46.56.