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Ecolab (ECL) Hits 52-Week High on New Products, Buyouts
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Shares of Ecolab Inc. (ECL - Free Report) attained a new 52-week high of $124.24 on Sep 2, eventually closing a tad lower at $124.05. This represents strong year-to-date returns of about 8.5%. The S&P 500 has returned only 6.7% during the same period.
St. Paul, MN-based Ecolab is a leading provider of cleaning, sanitizing, food safety and infection prevention products and services. This Zacks Rank #3 (Hold) stock reported earnings of $1.08 in second-quarter 2016, in line with the Zacks Consensus Estimate.
Key Growth Catalysts
Ecolab’s growing focus on water management and conservation, innovative product portfolio and strategic acquisitions are its key catalysts. We believe a robust product portfolio, new product launches and an expanding customer base will drive the company’s organic sales. Also, the realization of targeted synergies associated with acquisitions will help in margin expansion.
The recent takeover offer for France-based Laboratoires Anios will expand Ecolab’s institutional customer base and service coverage, particularly in the healthcare, food service, and food & beverage processing industries. Moreover, it will strengthen the company’s footprint in the emerging markets of Latin America and Asia-Pacific.
For full-year 2016, Ecolab expects adjusted gross margin of approximately 48%. SG&A expenses, as a percentage of sales, are projected in the range of 32% to 33%. Meanwhile, interest expense is forecast at around $270 million.
Ecolab expects mid-single-digit acquisition adjusted fixed currency sales growth at the Institutional, Industrial and Other segments. The company expects to repurchase approximately $700 million worth of its shares in 2016.
Stocks to Consider
Some better-ranked stocks in the broader medical sector are Natus Medical Inc , Masimo Corporation (MASI - Free Report) and NuVasive Inc . Notably, all the three stocks sport a Zacks Rank #1 (Strong Buy).
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Ecolab (ECL) Hits 52-Week High on New Products, Buyouts
Shares of Ecolab Inc. (ECL - Free Report) attained a new 52-week high of $124.24 on Sep 2, eventually closing a tad lower at $124.05. This represents strong year-to-date returns of about 8.5%. The S&P 500 has returned only 6.7% during the same period.
St. Paul, MN-based Ecolab is a leading provider of cleaning, sanitizing, food safety and infection prevention products and services. This Zacks Rank #3 (Hold) stock reported earnings of $1.08 in second-quarter 2016, in line with the Zacks Consensus Estimate.
Key Growth Catalysts
Ecolab’s growing focus on water management and conservation, innovative product portfolio and strategic acquisitions are its key catalysts. We believe a robust product portfolio, new product launches and an expanding customer base will drive the company’s organic sales. Also, the realization of targeted synergies associated with acquisitions will help in margin expansion.
The recent takeover offer for France-based Laboratoires Anios will expand Ecolab’s institutional customer base and service coverage, particularly in the healthcare, food service, and food & beverage processing industries. Moreover, it will strengthen the company’s footprint in the emerging markets of Latin America and Asia-Pacific.
ECOLAB INC Price and Consensus
ECOLAB INC Price and Consensus | ECOLAB INC Quote
For full-year 2016, Ecolab expects adjusted gross margin of approximately 48%. SG&A expenses, as a percentage of sales, are projected in the range of 32% to 33%. Meanwhile, interest expense is forecast at around $270 million.
Ecolab expects mid-single-digit acquisition adjusted fixed currency sales growth at the Institutional, Industrial and Other segments. The company expects to repurchase approximately $700 million worth of its shares in 2016.
Stocks to Consider
Some better-ranked stocks in the broader medical sector are Natus Medical Inc , Masimo Corporation (MASI - Free Report) and NuVasive Inc . Notably, all the three stocks sport a Zacks Rank #1 (Strong Buy).
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>