Ecolab Story

ECL -- USA Stock

USD 211.96 4.23 1.96%

Macroaxis Story

As many of us are excited about basic materials space, it is fair to summarize Ecolab Inc within current market trends. As we have suggested previously, Ecolab is beginning its pull down as stakeholders shift to be more bearish due to the increased sector volatility. Ecolab Inc moves indifferently to market moves. The returns on investing in Ecolab and the market returns of the last few months appear not related. Steady basic indicators of the company may denote signs of medium-term price drift for stakeholders. Ecolab Inc is scheduled to announce its earnings today. The next earnings report is expected on the 27th of April 2021.

Published over a week ago

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Will Ecolab (NYSE:ECL) continue to pull down in March?

The company's average rating is Hold from 16 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Ecolab market sentiment investors' perception of the future value of Ecolab. Let us look at a few aspects of Ecolab technical analysis. The company has Net Profit Margin of (7.52) %, which means that it does not effectively control expenditures or properly executes on its pricing strategies. This is way below average. In the same way, it shows Net Operating Margin of 21.22 %, which entails that for every 100 dollars of revenue, it generated 0.21 of operating income.

Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of Ecolab Inc. In general, we focus on analyzing Ecolab stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Ecolab's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Ecolab's intrinsic value. In addition to deriving basic predictive indicators for Ecolab, we also check how macroeconomic factors affect Ecolab price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Ecolab's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Ecolab in the context of predictive analytics.

Please note, it is not enough to conduct a financial or market analysis of a single entity such as Ecolab. Your research has to be compared to or analyzed against Ecolab's peers to derive any actionable benefits. When done correctly, Ecolab's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Ecolab Inc.

How does Ecolab Stands against Peers?

Analyzing Ecolab competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to Ecolab across multiple sectors and thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be.

Check out Ecolab Competition Details

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.

It is good to see analyst projects for Ecolab, but it might be worth checking our own buy vs. sell analysis

Closer look at Ecolab Semi Deviation

Ecolab Inc has current Semi Deviation of 1.41. Semi-deviation provides a good measure of downside risk for a equity or a portfolio. It is similar to standard deviation, but it only looks at periods where the returns are less than the target or average level.

Semi-deviation is the square root of semi-variance. Semi-variance is calculated by averaging the deviations of returns that have a result that is less than the mean.

Semi Deviation

SQRT(SV)

1.41

SQRT	=	Square root notation
SV	=	Ecolab semi variance of returns over selected period

Let's now compare Ecolab Semi Deviation to its closest peers:

ECL

ALB

CBT

CCF

	ECL	1.4085991212597038
	CC	2.29
	ALB	1.84
	CBT	1.76
	CCF	1.98

Over 3 percent pull down for Ecolab. What does it mean for stakeholders?

New Risk Adjusted Performance is up to 0.02. Price may pull down again. Ecolab Inc has relatively low volatility with skewness of 0.31 and kurtosis of -0.37. However, we advise all investors to independently investigate Ecolab Inc to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Takeaway on Ecolab Investment

While few other entities in the specialty chemicals industry are either recovering or due for a correction, Ecolab may not be performing as strong as the other in terms of long-term growth potentials. While some stakeholders may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Ecolab.

About Contributor

Raphi Shpitalnik is a Junior Member of Macroaxs Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time base at the beginning of the pandemic and eventually acquired a real test for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI. View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Ecolab Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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Ecolab Story

USD 211.96 4.23 1.96%

How does Ecolab Stands against Peers?

What do experts say?

Closer look at Ecolab Semi Deviation

Over 3 percent pull down for Ecolab. What does it mean for stakeholders?

Our Takeaway on Ecolab Investment

About Contributor

Would you like to provide feedback on the content of this article?

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