Are tools, iron in Warren Buffett’s sights?

Reuters reports Warren Buffett’s hunt for a large acquisition could lead to targets like Eaton (NYSE:ETN), Illinois Tool Works (NYSE:ITW) or Cliffs Natural Resources (NYSE:CLF).

The market news is quoted as saying,

All of them are trading at enough of a discount to analysts’ expected earnings growth for the next five years that Buffett could pay a 20 percent premium and still be getting value in the deal.

For the complete market news, click here.