Nyse Order Imbalance 72465.0 Shares On Buy Side

ITT Inc. ITT has been benefiting from the strong demand for its short-cycle product categories, driven by strength in pump projects and the Habonim valves business. Solid momentum in the aftermarket business, along with the acquisition of Svanehøj, is driving the Industrial Process segment.

Growth in component and connector sales within the aerospace and defense markets is aiding the Connect and Control Technologies segment. Also, the acquisitions of kSARIA and Micro-Mode augur well for the segment. In third-quarter 2024, revenues from Industrial Process and Connect and Control Technologies segments increased 19.3% and 12.6%, respectively.

The company intends to strengthen and expand its businesses through acquisitions. In September 2024, ITT acquired kSARIA Parent, Inc. The acquisition will enhance its portfolio of connectivity solutions for the defense and aerospace end markets, technological capabilities and market reach, thereby driving growth and operational efficiency.

Also, in January 2024, it acquired Svanehøj for approximately $395 million. The inclusion of Svanehøj’s portfolio of highly engineered flow solutions expanded its customer offerings and boosted its position in the marine pumps industry. The acquisitions of Svanehøj and kSARIA contributed 7% to the company’s sales growth in third-quarter 2024.

ITT remains committed to increasing shareholders’ value through dividend payments and share repurchases. For instance, during the first nine months of 2024, ITT paid out dividends of $78.7 million and repurchased shares worth $104 million. Also, in 2023, it paid dividends of $95.8 million and repurchased shares worth $60 million. The quarterly dividend rate was hiked by 10% in February 2024.

ITT’s Price Performance

Investors with an interest in Diversified Operations stocks have likely encountered both Swire Pacific (SWRAY) and ITT (ITT). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Swire Pacific has a Zacks Rank of #1 (Strong Buy), while ITT has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that SWRAY likely has seen a stronger improvement to its earnings outlook than ITT has recently. But this is just one piece of the puzzle for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

SWRAY currently has a forward P/E ratio of 9.29, while ITT has a forward P/E of 23.96. We also note that SWRAY has a PEG ratio of 0.57. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ITT currently has a PEG ratio of 1.85.

Another notable valuation metric for SWRAY is its P/B ratio of 0.76. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, ITT has a P/B of 4.14.

These metrics, and several others, help SWRAY earn a Value grade of A, while ITT has been given a Value grade of D.

SWRAY stands above ITT thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SWRAY is the superior value option right now.

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