Ecolab Stock: Is ECL Outperforming the Material Sector?

ECL +0.06% XLB +0.57%

With a market cap of around $77.9 billion, Ecolab Inc. (ECL) is a leader in water treatment, hygiene, and infection‑prevention solutions, headquartered in Saint Paul, Minnesota. Serving a diverse range of industries, including foodservice, hospitality, healthcare, retail, energy, and industrial sectors, Ecolab provides products and services that ensure clean environments, safe water, food safety, and sustainable operations.

Companies valued at $10 billion or more are generally considered "large-cap" stocks, and Ecolab fits this criterion perfectly. Operating in over 170 countries with around 48,000 employees, the company leverages its scale and expertise to help businesses improve efficiency, meet regulatory standards, and maintain high standards of health and safety worldwide.

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Shares of the company have declined 3.8% from its 52-week high of $286.04 recorded on Aug. 20. Over the past three months, Ecolab's shares have dropped 1.4%, outperforming the Materials Select Sector SPDR Fund's (XLB) 3% decline during the same period.

Longer term, ECL stock is up 17.4% YTD, outpacing XLB's 6.3% gain. Moreover, shares of the water solutions company have returned 11.1% over the past 52 weeks, compared to XLB’s 5.2% drop over the same time frame.

The stock has recently edged over its 50-day and 200-day moving averages, indicating a bullish trend.

On Nov. 14, Ecolab shares surged 1.3% after the company announced the launch of its Cooling as a Service (CaaS) program, a fully integrated solution designed to optimize cooling performance at a global scale. The program combines Ecolab’s 3D TRASAR™ Technology for Direct-to-Chip Liquid Cooling with its smart Coolant Distribution Unit, leveraging over a century of cooling expertise to deliver peak efficiency from data center facilities to high-performance servers.

However, ECL stock has outperformed its rival, Air Products and Chemicals, Inc. (APD). APD stock has dipped 10% on a YTD basis and 21.7% over the past 52 weeks.

Despite the stock’s outperformance over the past year, analysts remain cautiously optimistic about its prospects. ECL stock has a consensus rating of “Moderate Buy” from 27 analysts in coverage, and the mean price target of $294 is a premium of 6.8% to current levels.

On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com