Here's Why You Should Hold On To Ecolab (ECL) Stock For Now
Zacks Investment Research | Apr 10, 2018 09:44PM ET
Ecolab Inc. (NYSE:ECL) is a popular name in the MedTech space. The stock has returned 12.7%, comparing favorably with the industry ’s decline of 2.1% in a year’s time. Also, the current return is higher than the S&P 500’s rally of 11.4%.
With a market capitalization of approximately $40.51 billion, the stock has met earnings expectations in the second and third quarter of 2017. However, the company missed estimates in the first and fourth quarter of fiscal 2017. Currently, Ecolab is grappling with stiff competition and foreign exchange volatility in the niche space. The mixed sentiments justify the stock’s Zacks Rank #3 (Hold).
Here we take a detailed look at the company’s performance and operations to analyze why investors should hold on to this stock.
What’s Acting in Favor of Ecolab?
Ecolab’s segmental businesses continue to gain from product innovation and strategic buyouts. The company’s Global Industrial segment has gained from the Water, Food & Beverage and Life Sciences units in the fourth quarter. While Global Institutional segment sales witnessed solid growth in North America and Asia Pacific, Global Energy segment sales rose on strong growth in the well stimulation business and modest gains in the downstream business.
Ecolab Inc. Price and Consensus
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