On Aug 22, we issued an updated research report on St. Paul, MN-based Ecolab Inc. (ECL - Free Report) . The company is a leading provider of water, hygiene and energy technologies and services. The stock currently carries a Zacks Rank #3 (Hold).
Ecolab had an impressive run on the bourse over the last three months, trading above the industry in terms of price performance. A glimpse at the price movement reveals that Ecolab’s shares have gained 2.7%, comparing favorably with the industry’s 1.9% decline.
Ecolab reported a stellar second quarter of fiscal 2017 result, beating the Zacks Consensus Estimate for both counts. The upside came from new business gains, better pricing, product innovation and cost efficiencies. Overall adjusted quarterly net sales were $3.46 billion, up 4% from the year-ago period. This more than offset higher delivered product costs.
For the third quarter of 2017, Ecolab projects adjusted diluted earnings per share in the range of $1.36–$1.44, compared with $1.28 a year ago. Ecolab’s considerable earnings growth despite the challenging business environment instills confidence. Additionally, the company's large base of recurring revenues, industry-leading technologies and excellent field service are significant propellers for long-term growth.
The company’s prospects in the Global Industrial and Global Institutional business segments are also bright. In the last reported quarter, sales at these segments both scaled 3%, on a year-over-year basis. Furthermore, Ecolab boasts compelling fundamentals with revenues and adjusted earnings multiplying at a rate of 4.6% and 13.7%, over the last three years.
However, on the flip side, unfavorable foreign currency and the impact of Venezuelan deconsolidation are expected to hurt earnings in the near term. Also escalating costs and expenses are weighing on its margins. Last month, a comparative study of Ecolab’s forward P/E (forward 12-month basis) multiple reflected that the stock has been quite overvalued.
Key Picks
Some better-ranked medical stocks are Edwards Lifesciences Corp. (EW - Free Report) , Lantheus Holdings, Inc. (LNTH - Free Report) and Stryker Corporation (SYK - Free Report) . Edwards Lifesciences sports a Zacks Rank #1 (Strong Buy), while Lantheus Holdings and Stryker carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Edwards Lifesciences has a long-term expected earnings growth rate of 15.2%. The stock has climbed around 19.4% in the last six months.
Lantheus Holdings has a long-term expected earnings growth rate of 12.5%. The stock has surged 28.6% in the last six months.
Stryker Corporation has a long-term expected earnings growth rate of 10.00%. The stock has rallied roughly 12.8% in the last six months.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
On Aug 22, we issued an updated research report on St. Paul, MN-based Ecolab Inc. (ECL - Free Report) . The company is a leading provider of water, hygiene and energy technologies and services. The stock currently carries a Zacks Rank #3 (Hold).
Ecolab had an impressive run on the bourse over the last three months, trading above the industry in terms of price performance. A glimpse at the price movement reveals that Ecolab’s shares have gained 2.7%, comparing favorably with the industry’s 1.9% decline.
Ecolab reported a stellar second quarter of fiscal 2017 result, beating the Zacks Consensus Estimate for both counts. The upside came from new business gains, better pricing, product innovation and cost efficiencies. Overall adjusted quarterly net sales were $3.46 billion, up 4% from the year-ago period. This more than offset higher delivered product costs.
For the third quarter of 2017, Ecolab projects adjusted diluted earnings per share in the range of $1.36–$1.44, compared with $1.28 a year ago. Ecolab’s considerable earnings growth despite the challenging business environment instills confidence. Additionally, the company's large base of recurring revenues, industry-leading technologies and excellent field service are significant propellers for long-term growth.
The company’s prospects in the Global Industrial and Global Institutional business segments are also bright. In the last reported quarter, sales at these segments both scaled 3%, on a year-over-year basis. Furthermore, Ecolab boasts compelling fundamentals with revenues and adjusted earnings multiplying at a rate of 4.6% and 13.7%, over the last three years.
However, on the flip side, unfavorable foreign currency and the impact of Venezuelan deconsolidation are expected to hurt earnings in the near term. Also escalating costs and expenses are weighing on its margins. Last month, a comparative study of Ecolab’s forward P/E (forward 12-month basis) multiple reflected that the stock has been quite overvalued.
Key Picks
Some better-ranked medical stocks are Edwards Lifesciences Corp. (EW - Free Report) , Lantheus Holdings, Inc. (LNTH - Free Report) and Stryker Corporation (SYK - Free Report) . Edwards Lifesciences sports a Zacks Rank #1 (Strong Buy), while Lantheus Holdings and Stryker carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Edwards Lifesciences has a long-term expected earnings growth rate of 15.2%. The stock has climbed around 19.4% in the last six months.
Lantheus Holdings has a long-term expected earnings growth rate of 12.5%. The stock has surged 28.6% in the last six months.
Stryker Corporation has a long-term expected earnings growth rate of 10.00%. The stock has rallied roughly 12.8% in the last six months.
4 Surprising Tech Stocks to Keep an Eye on
Tech stocks have been a major force behind the market’s record highs, but picking the best ones to buy can be tough. There’s a simple way to invest in the success of the entire sector. Zacks has just released a Special Report revealing one thing tech companies literally cannot function without. More importantly, it reveals 4 top stocks set to skyrocket on increasing demand for these devices. I encourage you to get the report now – before the next wave of innovations really take off.
See Stocks Now>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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