Valued at a market cap of $71 billion, Saint Paul, Minnesota-based Ecolab Inc. (ECL) is a global leader in water, hygiene, and infection prevention solutions. The Saint Paul, Minnesota-headquartered company provides a comprehensive range of products and services, including water treatment, cleaning, sanitization, and pest elimination solutions.
Companies valued at $10 billion or more are generally considered “large-cap” stocks and Ecolab fits this criterion perfectly. The company benefits from a diverse portfolio of water, hygiene, and infection prevention solutions, serving a broad range of industries, including healthcare, food service, and manufacturing. Its emphasis on sustainability and operational efficiency gives it an edge in addressing evolving regulatory and environmental demands. Ecolab’s extensive customer base, recurring revenue model, and continuous investment in R&D further reinforce its market position, while its global service network ensures strong client relationships and consistent growth.
ECL recently touched its 52-week high of $273.69 on March 3, and is currently trading 8.3% below the peak. Shares of Ecolab have surged marginally over the past three months, underperforming the S&P 500 Index ($SPX), which declined 5.8% during the same period.
ECL stock has climbed marginally over the past six months and gained 11.6% over the past year. The SPX has also soared marginally over the past six months but has lagged ECL over the past year with a 9.5% return.
While ECL had been trading above its 50-day and 200-day moving averages since the end of January, it has recently dipped below its 50-day moving average.
On Feb. 11, Ecolab shares surged over 6% following its Q4 earnings report, with sales rising 7% year-over-year to $4 billion and adjusted EPS reaching $1.81, slightly exceeding expectations. The company reinforced its commitment to shareholder returns with a 14% dividend increase in December, marking 33 consecutive years of growth.
Looking ahead, Ecolab forecasts Q1 2025 adjusted EPS between $1.47 and $1.53, reflecting a 10% to 14% increase, while full-year adjusted EPS is projected to grow 12% to 15%, reaching $7.42 to $7.62.
Top rival The Sherwin-Williams Company (SHW) has struggled relative to Ecolab, with its stock climbing just 2.1% over the past year and tumbling 9% in the last six months, highlighting its weaker performance and fading momentum.
Despite ECL’s strong price action over the past year, analysts are cautiously optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 24 analysts covering the stock, and the mean price target of $291.94 suggests a premium of 16.3% to current levels.
