Based in St. Paul, Minnesota, Ecolab Inc. (ECL) specializes in providing water, hygiene, and energy technologies and services. With a market cap of $71.16 billion, the company serves a wide range of industries, including food and beverage, healthcare, hospitality, and industrial markets, offering solutions that promote safety, sustainability, and operational efficiency through its various brands and innovative products.
Companies valued at $10 billion or more are generally labeled as “large-cap” stocks, and Ecolab fits this criterion perfectly. The company serves customers in over 170 countries. Ecolab is renowned for its innovative products and technologies that enhance water safety, maintain hygiene standards, and improve operational efficiency across diverse industries.
Despite a 1.7% decline from its 52-week high of $253.54 reached on Aug. 30, shares of ECL company have gained 4.2% over the past three months, surpassing the Materials Select Sector SPDR Fund’s (XLB) 1.1% gains over the same time frame.
In the longer term, ECL stock is up 25.6% on a YTD basis, outperforming the XLB’s 6.1% gains. Moreover, shares of ECL have rallied 36.9% over the past 52 weeks, surpassing XLB’s 11% return over the same time frame.
ECL has been trading above its 200-day moving average since mid-November 2023 and 50-day moving average since early August, indicating a bullish trend.
Ecolab's stock fell 7.7% on Jul. 30 following the release of its Q2 earnings. The company's adjusted earnings per share came in at $1.68, slightly above the $1.66 expected by analysts, but its revenue of $3.99 billion missed the forecast of $4.03 billion. Looking ahead, Ecolab expects Q3 earnings between $1.75 and $1.85 per share and has raised its full-year earnings projection to a range of $6.50 to $6.70 per share, up from the previous guidance of $6.40 to $6.70.
Furthermore, ECL has outpaced its rival Air Products and Chemicals, Inc.’s (APD) marginal gain on a YTD basis.
Analysts remain moderately optimistic about ECL’s prospects. The stock has a consensus rating of “Moderate Buy” from the 24 analysts in coverage, and the mean price target of $257.06 suggests a 3.2% premium to its current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
