| BUSINESSWEEK ONLINE : OCTOBER 18, 1999 ISSUE | ||||||||
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| BUSINESSWEEK INVESTOR -- INSIDE WALL STREET
ITT Industries: Its Time May Be Nigh The stock market has been hard on industrial companies, despite the economy's strength. Take ITT Industries (IIN), whose stock is down from 41 1/2 in mid-April to 32, at a depressed p-e ratio of just 12.6 on estimated 1999 earnings. But some analysts are certain that the time for such industrial stocks is near, if not already here. Over the past two years, ITT Industries has changed its business mix, and ''emphasis has shifted toward profit enhancement and acquisition growth,'' says Quinten Nufer, an analyst at Warburg Dillon Read. He believes that ''the stock's underperformance is a buying opportunity'' and also that strong earnings gains and improving fundamentals could well drive an expansion of the p-e. ITT Industries was formed after the 1995 breakup of ITT Corp., which then included gaming, hotel, insurance, and education management operations. Now, ITT Industries has ''a portfolio of faster-growing, less cyclical, and more profitable businesses,'' says Nufer. ITT is a major producer of pumps, electronic connectors, and military defense gear. Harriet Baldwin of Deutsche Bank Alex. Brown rates the stock a buy, based on its market leadership and opportunities to improve returns. Her 12-month target for the stock price is 46, or 16 times her 2000 earnings-per-share estimate of $2.90. BY GENE G. MARCIAL _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP |
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RELATED ITEMS ITT Industries: Its Time May Be Nigh CHART: In a Serious Swoon INTERACT E-Mail to Business Week Online | |||
