Ecolab Inc. (ECL), based in Saint Paul, Minnesota, offers water, hygiene, and infection prevention solutions. With a market capitalization of $70.1 billion, the company focuses on services like food safety, sanitation, and improving sustainable water and energy use.
Comparing Ecolab’s Performance Against Market Trends
Over the past year, shares of ECL have slightly lagged behind the broader market. ECL’s stock has increased by 31.1%, while the S&P 500 Index ($SPX) experienced a slight edge with a nearly 31.8% gain. In 2024, ECL recorded a 24.9% rise, which trails behind the 25.8% increase of the SPX year-to-date.
Ecolab Outshines Clean Water ETF
When focusing on performance against the Global X Clean Water ETF (AQWA), ECL appears to be outperforming. Over the last year, AQWA has brought in about 19.2%, while ECL’s year-to-date returns surpass AQWA’s 12.2% gains.
Quarterly Results Highlight Mixed Performance
On October 29, ECL shares dropped over 1% following its Q3 earnings report. The company reported an adjusted EPS of $1.83, beating Wall Street’s expectation of $1.82. However, ECL’s revenue of $4 billion fell short of the expected $4.02 billion. For Q4, the company anticipates an adjusted EPS between $1.75 and $1.85, forecasting a full-year adjusted EPS in the range of $6.60 to $6.70.
Analysts Expect Strong Earnings Growth
This fiscal year, which concludes in December, analysts predict ECL’s EPS will rise by 27.6% to $6.65 on a diluted basis. Impressively, the company has surpassed consensus estimates in each of the last four quarters.
Analyst Ratings Reflect Cautious Optimism
Out of 25 analysts covering ECL stock, the consensus rating is a “Moderate Buy,” consisting of 11 “Strong Buy” ratings, two “Moderate Buys,” and 12 “Holds.” This sentiment is not as bullish compared to a month ago, when 12 analysts recommended a “Strong Buy.”
Future Targets Show Potential for Growth
On November 18, Barclays PLC (BCS) maintained an “Overweight” rating for ECL and increased its price target to $300, suggesting a potential upside of 21.1% from current levels. The consensus mean price target of $280.11 indicates a 13.1% premium, while the highest target of $310 suggests a possible upside of 25.2%.
On the date of publication, Neha Panjwani did not hold any positions in the securities mentioned in this article. All data is provided solely for informational purposes. For further details, please refer to the Barchart Disclosure Policy here.
The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
