ITT Corp (ITT): Reviewing Valuation as Industrial Sales Climb and Acquisitions Drive Growth

ITT (NYSE:ITT) is drawing attention after strong sales growth in its Industrial Process segment, with recent acquisitions like kSARIA further boosting the company’s top-line performance. Investors are watching how acquisition-driven gains compare to higher costs and currency fluctuations.

See our latest analysis for ITT.

ITT has seen some solid momentum lately, with recent acquisitions and industrial demand fueling renewed investor interest. The latest $181.55 share price comes as its one-year total shareholder return stands at a sturdy 25%, highlighting both operational progress and ongoing market confidence in the company’s strategy.

If ITT’s acquisition-inspired growth has you curious, now might be the perfect moment to discover fast growing stocks with high insider ownership.

With ITT shares hovering just below analyst price targets and trading close to intrinsic value, investors have to ask whether there is still upside left or if the market has already priced in the company’s future growth.

Most Popular Narrative: 4.6% Undervalued

With the narrative fair value at $190.25 and ITT’s last close at $181.55, analysts are suggesting there is more upside than the market is currently pricing in. This frames the latest stock price as potentially attractive, especially for those focused on growth stories supported by sector momentum.

Expansion of high-margin aftermarket and services business, along with new technologies such as geopolymer brake pads, advanced fuel pumps, and digital monitoring, positions ITT to benefit from industry digitalization and energy efficiency standards. This supports margin expansion and stable, recurring earnings streams.

Read the complete narrative.

Earnings upgrades, revenue acceleration, and profit margins all play a starring role in the consensus view. But which numbers power this narrative calculation? Crack open the full narrative to discover the intriguing financial forecasts that shape this bullish valuation.

Result: Fair Value of $190.25 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing supply chain constraints and integration challenges from recent acquisitions remain key risks. These factors could undermine ITT's current growth narrative.

Find out about the key risks to this ITT narrative.

Another Perspective: Market Ratios Tell a Different Story

While the main narrative points to ITT being undervalued, a look at its price-to-earnings ratio suggests a note of caution. At 27.4x, ITT trades higher than the Machinery industry average of 24.1x and also surpasses its fair ratio of 23.2x. That gap hints the share price already anticipates strong growth, making future upside less certain if results disappoint. What happens if the market revalues toward the fair ratio?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own ITT Narrative

If the consensus narrative does not align with your views, you can dig into the underlying numbers and build your own story in just a few minutes. Do it your way.

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding ITT.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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