About ITT INC.
ITT Inc. manufactures and sells engineered critical components and customized technology solutions for the transportation, industrial, and energy markets worldwide. The company operates through three segments: Motion Technologies, Industrial Process, and Connect & Control Technologies. The Motion Technologies segment manufactures brake pads, shims, shock absorbers, and energy absorption components; and sealing technologies primarily for the transportation industry, including passenger cars, trucks, light- and heavy-duty commercial and military vehicles, buses, and trains. The Industrial Process segment designs and manufactures industrial pumps, valves, and plant optimization and remote monitoring systems and services; and centrifugal and twin screw positive displacement pumps, as well as aftermarket solutions, such as replacement parts and services.
It serves various customers in industries, such as chemical, energy, mining, and other industrial process markets. The Connect & Control Technologies segment designs and manufactures a range of engineered connectors and specialized control components for critical applications supporting various markets, including aerospace and defense, industrial, transportation, medical, and energy. This segment's connector product portfolio includes electrical connectors, such as circular, rectangular, radio frequency, fiber optic, D-sub miniature, micro-miniature, and cable assemblies, as well as control products consist of actuators, valves, and pumps and switches for flow control applications; rate controls, seat recline locks, and elastomer isolators for aircraft interiors; elastomeric bearings for rotorcraft vibration isolation; heaters, hoses, and composite ducting for environmental control systems; and advanced composites for engine applications. ITT Inc. was incorporated in 1920 and is headquartered in White Plains, New York.
ITT operates in the Manufacturing | Machinery | headquartered in White Plains, Connecticut | approximately 10,300 employees | led by CEO Luca Savi.
The $13.8B question: What happens when a company this good becomes this expensive?
In the constellation of American capitalism, certain companies shine brighter than others — not because they are inherently more valuable, but because they have positioned themselves at the nexus of forces that shape the economy. ITT INC. is one such company.
At $13.8B in market capitalization, ITT INC. (ITT) currently ranks #269 in our quantitative model, with a composite score of 75.3/100. That places it firmly in "Strong Buy" territory — our highest conviction rating.
But here's the thing about stocks priced for perfection: They leave no room for error.
The Numbers That Matter
Let's start with what's undeniably true. Our 6-factor model gives ITT the following scores:
| Factor | Score | Weight | Assessment |
|---|---|---|---|
| Quality | 75/100 | 30% | Strong |
| Value | 75/100 | 15% | Fair |
| Momentum | 55/100 | 25% | Steady |
| Investment | 32/100 | 10% | Low |
| Stability | 85/100 | 10% | Fortress |
| Short Interest | 57/100 | 10% | Normal |
The quality score of 75/100 is the headline here. It reflects profitability metrics that would make most CFOs weep with envy:
- ROE: 18.6%
- Net Margin: 12.8%
- Gross Margin: 35.5%
These aren't just good numbers. They're the kind of numbers that make ITT a "must-own" stock for institutional portfolios.
The Bull Case
"If you could design a business in a laboratory, it would look something like ITT."
The bull case writes itself:
- Quality is persistent. Academic research shows high-quality stocks outperform by 4-6% annually over long periods. ITT is quality defined.
- Momentum is real. With a momentum score of 55/100, the stock has been recognized by the market — and momentum tends to persist.
- The moat is deep. Companies with these margins don't lose them easily. The competitive position is entrenched.
The Bear Case
But here's what keeps value investors up at night:
- Valuation compression risk. At current levels, the stock is priced for continued perfection. Any stumble — a missed quarter, a competitive threat, a macro slowdown — could compress the multiple from 28.6x to the low 20s. That's a 20-30% decline without anything fundamentally "wrong."
- The crowded trade problem. When everyone owns a stock, who's left to buy? Momentum works until it doesn't.
- Mean reversion. Trees don't grow to the sky. At some point, growth decelerates.
The Valuation Framework
| Scenario | Assumption | Fair Value | Upside/Downside |
|---|---|---|---|
| Bear | Multiple compression to 20x | -20% | Downside |
| Base | Current trajectory continues | +10-15% | Modest upside |
| Bull | Momentum accelerates | +30-40% | Significant upside |
The risk-reward is ... fine. Not exceptional. Not terrible. Just fine.
The Bottom Line
ITT INC. is exactly what it appears to be: a high-quality business with strong momentum trading at a premium price. Whether that's attractive depends entirely on what kind of investor you are.
For long-term, buy-and-hold investors, ITT is a core holding. For value investors or short-term traders, look elsewhere.
The company is priced for perfection — and in markets, as in life, perfection is a fragile thing.
⭐⭐⭐⭐⭐ Rating: 5-Star Strong Buy
Score: 75.3/100 | Rank: #269 of 3,571 stocks
Sector: Industrials
This analysis reflects the views of Blank Capital Research as of February 16, 2026. It is not investment advice. Past performance does not guarantee future results.