Is Ecolab Stock Underperforming the Nasdaq?
With a market cap of $75.7 billion, Ecolab Inc. (ECL) is a global leader in water, hygiene, and infection prevention solutions and services. Operating through four segments - Global Industrial; Global Institutional & Specialty; Global Healthcare & Life Sciences; and Global Pest Elimination, it serves diverse industries including food and beverage, healthcare, hospitality, manufacturing, and energy.
Companies valued at $10 billion or more are generally considered "large-cap" stocks, and Ecolab fits this criterion perfectly. Ecolab delivers specialized products and services, including water treatment, cleaning and sanitizing solutions, and pest control, across over 170 countries.
Despite this, shares of the Saint Paul, Minnesota-based company have declined 2.4% from its 52-week high of $273.69. ECL stock has fallen marginally over the past three months, lagging behind the Nasdaq Composite’s ($NASX) 6.4% rise over the same time frame.
In the longer term, shares of the water solutions company have increased 13.4% over the past 52 weeks, underperforming NASX’s 15.4% return over the same time frame. However, ECL stock is up nearly 14% on a YTD basis, outperforming NASX’s marginal gain.
The stock has climbed above its 50-day and 200-day moving averages since May.
Shares of Ecolab rose 3.3% on Apr. 29 after the company reported Q1 2025 adjusted EPS of $1.50, matching Wall Street expectations. Revenue came in at $3.7 billion, also in line with forecasts, despite a 1.5% year-over-year decline attributed to the sale of its surgical unit and weaker healthcare demand. Investors responded positively to Ecolab’s reaffirmation of its full-year earnings growth forecast of 12% to 15% and issued strong Q2 adjusted EPS guidance of $1.84 to $1.94.
Confidence was further boosted by the company’s proactive measures to offset tariff pressures, including a 5% surcharge on all U.S. products and services and a "local for local" production model.
Also, Ecolab has outperformed its rival Linde plc (LIN). LIN stock has gained 9.9% over the past 52 weeks and 13.2% on a YTD basis.
Despite the stock’s underperformance relative to NASX over the past year, analysts remain moderately optimistic on Ecolab. The stock has a consensus rating of “Moderate Buy” from 24 analysts in coverage, and as of writing, ECL is trading below the mean price target of $279.05.
On the date of publication, Sohini Mondal 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. For more information please view the Barchart Disclosure Policy here.