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 0.9%. By the end of trading, Ecolab rose $1.17 (1.3%) to $89.14 on light volume. Throughout the day, 709,318 shares of Ecolab exchanged hands as compared to its average daily volume of 1,100,700 shares. The stock ranged in a price between $87.66-$89.22 after having opened the day at $87.80 as compared to the previous trading day's close of $87.97. Other companies within the Consumer Non-Durables industry that increased today were: Ever-Glory International Group ( EVK), up 27.9%, Mannatech ( MTEX), up 16.8%, STR Holdings ( STRI), up 11.0% and Tandy Brands Accessories ( TBAC), up 10.4%.
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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 $25.7 billion and is part of the consumer goods sector. The company has a P/E ratio of 32.1, above the S&P 500 P/E ratio of 17.7. Shares are up 22.4% year to date as of the close of trading on Tuesday. 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 revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and expanding profit margins. 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, China Xiniya Fashion ( XNY), down 5.0%, Standard Register Company ( SR), down 4.1%, Verso Paper ( VRS), down 3.4% and Blyth ( BTH), down 3.1% , were all laggards within the consumer non-durables industry with PVH ( PVH) 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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