Trade-Ideas LLC identified

Ecolab

(

ECL

) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Ecolab as such a stock due to the following factors:

  • ECL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $136.9 million.
  • ECL has traded 707.1490000000000009094947017729282379150390625 options contracts today.
  • ECL is making at least a new 3-day high.
  • ECL has a PE ratio of 35.
  • ECL is mentioned 1.32 times per day on StockTwits.
  • ECL has not yet been mentioned on StockTwits today.
  • ECL is currently in the upper 20% of its 1-year range.
  • ECL is in the upper 35% of its 20-day range.
  • ECL is in the upper 45% of its 5-day range.
  • ECL is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on ECL:

Ecolab Inc. provides water, hygiene, and energy technologies and services for customers worldwide. The company operates in three segments: Global Industrial, Global Institutional, and Global Energy. The stock currently has a dividend yield of 1.2%. ECL has a PE ratio of 35. Currently there are 8 analysts that rate Ecolab a buy, 1 analyst rates it a sell, and 6 rate it a hold.

The average volume for Ecolab has been 1.1 million shares per day over the past 30 days. Ecolab has a market cap of $34.5 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.16 and a short float of 2.1% with 4.82 days to cover. Shares are up 4.2% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Ecolab as a

buy

. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:

  • Net operating cash flow has significantly increased by 320.00% to $472.50 million when compared to the same quarter last year. In addition, ECOLAB INC has also vastly surpassed the industry average cash flow growth rate of 78.37%.
  • The gross profit margin for ECOLAB INC is rather high; currently it is at 54.18%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 7.45% trails the industry average.
  • ECOLAB INC reported flat earnings per share in the most recent quarter. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, ECOLAB INC reported lower earnings of $3.32 versus $3.93 in the prior year. This year, the market expects an improvement in earnings ($4.45 versus $3.32).
  • ECL, with its decline in revenue, slightly underperformed the industry average of 5.9%. Since the same quarter one year prior, revenues slightly dropped by 6.1%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.
  • The change in net income from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Chemicals industry average. The net income has decreased by 1.1% when compared to the same quarter one year ago, dropping from $233.40 million to $230.80 million.

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