Ecolab stock: buy or sell
Updated on:
Jan 18th, 2021
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Ecolab stock brief
- Counting last Friday, it's been 3 consecutive sessions in negative for Ecolab. Price closed last Friday at $210.77 after only moving a -0.78%.
- From the chart point view, price is drawing a scaled uptrend since last October with higher tops and higher bottoms. Up to date, price marked a 16.54% profit since the beginning of this rally
- G.Research and Gabelli published strong buy ratings for Ecolab last Friday, with an average forecast of $0.00
- Ecolab Inc. provides water, hygiene, and energy technologies and services worldwide.
Should I buy Ecolab stock?
Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $ECL stock a buy?
In the current situation of Ecolab there is not any eligible buy setup. This doesn't mean we expect a selloff for $ECL in coming sessions, or that it may not rise higher. Simply, it doesn't match our recommended trading systems
Should I sell Ecolab stock?
When you own a stock with some profit, it's really hard to decide the good moment to sell and get your profits. Like when we have to buy shares, determining when is appropiate time to sell is not a whimsy decision, and we must follow our own trading style. When selling, as well as buying, detailed setups are very easy to follow and are only valid for selling stocks in your porfolio, not for shorting $ECL stock
A golden rule is that you must never keep a trading operation that yields greater losses than those expected upon the buy. When to sell your stock should always be dictated by the stop-loss (automatic or manual)
Is it time to sell Ecolab stock?
Currently, Ecolab stock doesn't match any of our preferred sell setups, so if you hold Ecolab shares and your operation is in profit probably is not time to sell now
Price lost SMA50 level
Ecolab stock gained a 8.38% in a month while it was above the 50-day simple moving average. Last Thursday, price crossed down the 50-day SMA showing that the previous uptrend may have come to an end. This is a good time to review your current setup for this position and consider if it's time to sell
Price broke down below last bottom
Ecolab ratings
In the last month, 3 ratings were published for Ecolab. General sentiment is bullish, with 3 out of 3 publishing positive forecasts
| Brokerage firm | Rating |
|---|---|
| Jan 7th, 2021 | |
| Argus | |
| Jan 15th, 2021 | |
| G.Research | Neutral → |
| Gabelli | Neutral → |
Ecolab stock analysis
Ecolab stock started an uptrend last October, and gained an amazing 16.54%. Rising highs and lows can be seen easily on a chart and how price action offered very few entry points on the breakouts. Latest low was in mid-December, when price bounced at $210.79. However, $ECL could not resume the uptrend after topping at $227.97, and dropped crossing its $210.79 support last Friday
SMAs overview
Supports and resistances
The current resistances are:
The current supports are:
Bollinger bands
Since the price surpassed the upper band on January 7, the price has corrected downwards by 7.54%. The price is trading very close to the lower Bollinger band, signaling some level of oversold in recent sessions. This is not a buy signal, as price can move in these levels for many days and weeks
Relative strength index
The has been between the overbought and oversold zones for several weeks, and therefore, without this indicator really serving to help us make any decisions.
Ecolab stock price history
Ecolab started trading on Feb 21st, 1973 priced at $1.05 per share1. Since then, ECL stock has risen by 19,973.33%, with an average of 424.96% per year. An investment of thousand dollars at that time would worth $200,733.33 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for Ecolab stock
Nobody can predict how much a share will be priced tomorrow. However, many stock price predictions are posted every day by banks, financial institutions and independent analysts.
Along with buy or sell recommendations, brokerage institutions post their price target based on the stock price action and the company fundamental data. Most of these forecasts follow the release of new fundamental information by the company, and usually. Again, these predictions are not direct recommendations for individual traders and should not be followed blindly.
There is just one price target issued for Ecolab that predicts a price of $250.00.
| Brokerage firm | Price target |
|---|---|
| Jan 7th, 2021 | |
| Argus | $215.00 → $250.00 |
| Jan 15th, 2021 | |
| G.Research | Not available |
| Gabelli | Not available |
Earnings and financials
Earnings call was hosted by Ecolab ($ECL) last October after presenting the financial report. Ecolab posted earnings of $1.15 per share on sales of $3.0 billion. The market estimate was $1.13 per share on revenue of $3.0 billion.
Compared to the same quarter one year ago, EPS was $1.71, so current EPS means a drop of -32.75%. Revenue dropped a -20.94% on an annualized basis in the , from $38.2B to $30.2B last quarter.Ecolab ($ECL) releases financial report mid next February. Forecasted for this quarter is $1.25, compared to $1.15 that was reported for Q3.
Ecolab performance
| Company | 1m | 3m | 6m |
|---|---|---|---|
| Ecolab ($ECL) | -5.10% | 4.30% | 0.90% |
Important note:
The opinions given in this article are personal and not recommendations for you to buy or sell shares. The author of this text does not have any knowledge of the specific circumstances of the reader, his or her financial statements or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Comments are posted for learning reasons onlyEcolab summary
| Friday, January 15th, 2021 | |
|---|---|
| Open | $213.17 |
| Close | $210.77 |
| Day range | $209.79 - $213.98 |
| Previous close | $212.43 |
| Session gain | -0.78% |
| Average true range | $6.74 |
| 50d mov avg | $216.01 |
| 100d mov avg | $207.40 |
| 200d mov avg | $201.20 |
| Earnings date | February 16th, 2021 |