Here's Why Ecolab (ECL) is a Strong Value Stock
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.
Ecolab (ECL)
St. Paul, MN-headquartered Ecolab Inc. is a global sustainability provider offering water, hygiene and infection prevention solutions and services that protect people and the resources vital to life.
ECL is a Zacks Rank #2 (Buy) stock, with a Value Style Score of B and VGM Score of B. Shares are currently trading at a forward P/E of 34.4X for the current fiscal year compared to the Chemical - Specialty industry's P/E of 14.8X. Additionally, ECL has a PEG Ratio of 2.6 and a Price/Cash Flow ratio of 22.8X. Value investors should also note ECL's Price/Sales ratio of 3.4X.
A company's earnings performance is important for value investors as well. For fiscal 2023, 11 analysts revised their earnings estimate higher in the last 60 days for ECL, while the Zacks Consensus Estimate has increased $0.10 to $5.18 per share. ECL also holds an average earnings surprise of 1.9%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding ECL to their portfolios.
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Ecolab Inc. (ECL) : Free Stock Analysis Report
