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Ecolab (ECL) Acquires Abednego Environmental, Shares Gain
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In a bid to strengthen its water solution line of offerings, St. Paul, MN-based Ecolab Inc. (ECL - Free Report) , a leading provider of water, hygiene and energy technologies and services, announced the acquisition of Abednego Environmental Services.
Notably, Abednego will be part of Ecolab’s Nalco Water business operations. Nalco is the worldwide leader in sustainability services and integrated water treatment solutions. Shares of Ecolab rallied almost 0.7% to close at $118.32 following the news.
A glimpse at the price performance of the stock over the past one year reveals a solid return too with a gain of almost 14.7%. This compares favorably with the Zacks classified Chemicals-Specialty sub-industry’s gain of around 13.7%. In fact, with a long term expected earnings growth rate of 13.4%, the stock has a solid potential for further price appreciation.
Getting back to the deal, Abednego is a privately held chemical solutions company yielding annual revenues worth $40 million. Per management, the latest development would fortify the company’s foothold, exclusively in the automotive industry.
Notably, Abednego’s suite of products will complement Ecolab’s industry-leading APEX paint detackification technology (a water treatment solution) used in the processes of re-cycling water.
Ecolab’s growing focus on water management and conservation, innovative product portfolio and strategic acquisitions are key catalysts. Of the latest developments for the stock, we are upbeat about the acquisition announcement of France-based Laboratoires Anios. The buyout is expected to fortify Ecolab’s footprint and strengthen its institutional customer base and service coverage.
Our Take
We are upbeat about the acquisition taking into consideration the bountiful prospects in the global water treatment and chemicals market. Notably, the niche markets are expected to reach a worth of $24.94 billion by 2020, growing at a CAGR of 4.5% (Markets And Markets).
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, the stock carries a Zacks Rank #4 (Sell). In fact, the estimate revision trend for the current year has been unfavorable as one estimate moved south over the last two months, compared to no movement in the opposite direction. Thus, investors at the moment are awaiting a favorable reversal in estimates before adding the stock.
Stocks to Consider
Better-ranked stocks in the broader medical sector include Glaukos Corporation (GKOS - Free Report) , Dextera Surgical Inc. and Penumbra Inc. (PEN - Free Report) . Notably, Glaukos Corporation and Penumbra sport a Zacks Rank #1 (Strong Buy) while Dextera carries a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
Glaukos Corporation has a long-term expected earnings growth rate of approximately 25%. Notably, the stock represents an impressive one-year return of 109.14%.
Dextera Surgical posted a positive earnings surprise of 8.3% in the last reported quarter. Additionally, a long-term expected earnings growth rate of 25% raises investor confidence.
Penumbra has a long-term expected earnings growth rate of 20%. Notably, the stock represents an impressive one-year return of almost 32.9%.
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Ecolab (ECL) Acquires Abednego Environmental, Shares Gain
In a bid to strengthen its water solution line of offerings, St. Paul, MN-based Ecolab Inc. (ECL - Free Report) , a leading provider of water, hygiene and energy technologies and services, announced the acquisition of Abednego Environmental Services.
Notably, Abednego will be part of Ecolab’s Nalco Water business operations. Nalco is the worldwide leader in sustainability services and integrated water treatment solutions. Shares of Ecolab rallied almost 0.7% to close at $118.32 following the news.
A glimpse at the price performance of the stock over the past one year reveals a solid return too with a gain of almost 14.7%. This compares favorably with the Zacks classified Chemicals-Specialty sub-industry’s gain of around 13.7%. In fact, with a long term expected earnings growth rate of 13.4%, the stock has a solid potential for further price appreciation.
Getting back to the deal, Abednego is a privately held chemical solutions company yielding annual revenues worth $40 million. Per management, the latest development would fortify the company’s foothold, exclusively in the automotive industry.
Notably, Abednego’s suite of products will complement Ecolab’s industry-leading APEX paint detackification technology (a water treatment solution) used in the processes of re-cycling water.
Ecolab’s growing focus on water management and conservation, innovative product portfolio and strategic acquisitions are key catalysts. Of the latest developments for the stock, we are upbeat about the acquisition announcement of France-based Laboratoires Anios. The buyout is expected to fortify Ecolab’s footprint and strengthen its institutional customer base and service coverage.
Our Take
We are upbeat about the acquisition taking into consideration the bountiful prospects in the global water treatment and chemicals market. Notably, the niche markets are expected to reach a worth of $24.94 billion by 2020, growing at a CAGR of 4.5% (Markets And Markets).
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.
Ecolab Inc. Price
Ecolab Inc. Price | Ecolab Inc. Quote
However on the flip side, the stock carries a Zacks Rank #4 (Sell). In fact, the estimate revision trend for the current year has been unfavorable as one estimate moved south over the last two months, compared to no movement in the opposite direction. Thus, investors at the moment are awaiting a favorable reversal in estimates before adding the stock.
Stocks to Consider
Better-ranked stocks in the broader medical sector include Glaukos Corporation (GKOS - Free Report) , Dextera Surgical Inc. and Penumbra Inc. (PEN - Free Report) . Notably, Glaukos Corporation and Penumbra sport a Zacks Rank #1 (Strong Buy) while Dextera carries a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
Glaukos Corporation has a long-term expected earnings growth rate of approximately 25%. Notably, the stock represents an impressive one-year return of 109.14%.
Dextera Surgical posted a positive earnings surprise of 8.3% in the last reported quarter. Additionally, a long-term expected earnings growth rate of 25% raises investor confidence.
Penumbra has a long-term expected earnings growth rate of 20%. Notably, the stock represents an impressive one-year return of almost 32.9%.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>