Ecolab Inc. (ECL)

Ecolab stock forecast: buy or sell

Ecolab stock outlook

  • Ecolab closed today at $195.20 after substracting a -1.99%.
  • In early June price started slicing and printed 2 consecutive lower tops. this downtrend marked a -15.24% loss.
  • Evercore ISI posted a bullish rating for Ecolab on Monday
  • Ecolab Inc. provides water, hygiene, and energy technologies and services worldwide. The company operates through Global Industrial, Global Institutional, Global Energy, and Other segments.
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Important note:
The opinions published in this article are personal and not recommendations for you to buy or sell stocks. The author of this report does not know the particular conditions of the reader, his or her own finances 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 Thoughts are provided for learning motives only

Ecolab stock charts overview

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 the next few days, or that it may not rise higher. Simply, it doesn't match our recommended trading systems

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Should I sell Ecolab stock?

"To sell or not to sell", if you are holding Ecolab shares?. Trading strategies allow us to avoid impulsive decisions based on our feelings or the noise that surrounds the market. When selling, as well as buying, detailed setups are very simple to follow and are only applicable for selling stocks in your porfolio, not for shorting ECL stock

As a golden rule, you should never mantain a trading operation that shows a greater losses than those expected at the time of purchase. The moment to sell your stock must 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 own Ecolab stock and your operation is in profit probably is not time to sell now

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Analysts' recommendations to buy or sell Ecolab stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last month, 2 ratings were published for Ecolab

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Ecolab ratings

Brokerage firmRating
Sep 8th, 2020
BMO Capital Markets
Sep 21st, 2020
Evercore ISI Buy

Technical analysis

Ecolab continues trending lower since early June, and has droppped a -15.24%. Like in all downtrends, the stock oscillates drawing lower highs and lows. In this case, we have seen 3 consecutive lower tops

SMAs overview

Moving averages are simple indicators for investors to gauge direction. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Moving averages are usually calculated on different periods depending on the trading timeframe 21, 50, 100 and 200 days are the most usual moving averages. Learn more about Moving Averages from sources like Wikipedia and Investopedia

Supports and resistances

Investors use support and resistance levels to find price points on a chart that may behave as glass ceiling, preventing the price of a stock to move in certain direction. A support level is a level where the price tends to find support as it falls. This means that the price is more likely to "bounce off" this level rather than break through it. However, if the price breaks down this level, it will probably continue falling until meeting another support level. On the other side, a resistance level is where the price tends to find resistance as it rises. In the same manner, the price is more likely to "bounce off" at this level, and if it finally ruptures this level, it will rise more easily until it hits the next resistance

The current resistances are:

  • R1: $195.52 (0.16% above)
  • R2: $198.06 (1.47% above)
  • R3: $199.03 (1.96% above)
  • The current support levels are:

  • S1: $193.33 (-0.96% below)
  • S2: $192.49 (-1.39% below)
  • S3: $190.54 (-2.39% below)
  • Bollinger bands

    The so-called Bollinger bands are a well-known technique that was created by John Bollinger. It is composed of 3 bands that are superimposed on the price evolution chart:

    • The central band is a moving average, usually a simple moving average calculated with 20 periods
    • The upper band is calculated by adding to the value of the simple moving average 2 times the standard deviation of the moving average
    • The lower band is calculated by subtracting from the simple moving average 2 times the standard deviation of the moving average

    The price is moving near to the lower Bollinger band, poiting some level of oversold in recent sessions. This is not a buy point, as price can trade in these levels for many days and weeks

    Relative strength index

    The Relative Strength Index is an oscillator-type indicator that measures price changes to reveal when the price of a share or financial asset is oversold or overbought. Like other oscillation indicators, the RSI fluctuates from 0% to 100%. The relative strength indicator is one of the best known and most widely used indicators, invented by J. Welles Wilder in 1978

    The Relative Strength Indicator has been between the the levels of 30 and 70 for several weeks, and therefore, without this indicator really being of any help to us in making any decisions.

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    Earnings and financials

    Ecolab hosted the earnings event and released the second-quarter report in late July. Ecolab reported second-quarter earnings of $0.65 per share on sales of $2.7 billion. The consensus earnings estimate was $0.85 per share on revenue of $2.8 billion.

    This compares to earnings of $1.42 per share same quarter last year, so reported EPS means a drop of -54.23%. Looking at sales, figures tanked a -28.56% compared to $3.8B same quarter last year.

    Ecolab will host the quarterly earnings call on late next October. Estimated earnings per share (EPS) for this quarter is $1.12. Earnings reporting day has a more than usual risk for traders as the data provided can jump up or down the shares price with lower liquidity and not honouring your buy or stop-loss orders. Check company's website to confirm time and details on the earnings call and the earnings report.

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