Ecolab Inc. (ECL): Today's Featured Consumer Non-Durables Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

Ecolab ( ECL) pushed the Consumer Non-Durables industry higher today making it today's featured consumer non-durables winner. The industry as a whole closed the day up 1.2%. By the end of trading, Ecolab rose $1.31 (1.6%) to $85.58 on average volume. Throughout the day, 1,175,739 shares of Ecolab exchanged hands as compared to its average daily volume of 1,117,200 shares. The stock ranged in a price between $84.76-$85.65 after having opened the day at $85.06 as compared to the previous trading day's close of $84.27. Other companies within the Consumer Non-Durables industry that increased today were: Resolute Forest Products ( RFP), up 7.3%, Revlon ( REV), up 5.7%, Verso Paper ( VRS), up 5.2% and China Shengda Packaging Group ( CPGI), up 4.2%.
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Ecolab Inc. develops and markets programs, products, and services for hospitality, foodservice, healthcare, industrial, and energy markets worldwide. It operates through six segments: U.S. Cleaning and Sanitizing; U.S. Ecolab has a market cap of $24.9 billion and is part of the consumer goods sector. The company has a P/E ratio of 34.4, above the S&P 500 P/E ratio of 17.7. Shares are up 17.2% year to date as of the close of trading on Thursday. Currently there are 11 analysts that rate Ecolab a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Ecolab as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the negative front, Summer Infant ( SUMR), down 6.9%, Forward Industries ( FORD), down 5.5%, Mannatech ( MTEX), down 4.0% and UFP Technologies ( UFPT), down 3.5% , were all laggards within the consumer non-durables industry with Energizer Holdings ( ENR) being today's consumer non-durables industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the consumer non-durables industry could consider Consumer Staples Select Sector SPDR ( XLP) while those bearish on the consumer non-durables industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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