With a market cap of $74.4 billion, Ecolab Inc. (ECL) is a global leader in water, hygiene, and infection prevention solutions. The company operates through four key segments - Global Industrial; Global Institutional & Specialty; Global Healthcare & Life Sciences; and Global Pest Elimination, serving a wide range of industries including food, healthcare, energy, and hospitality.

Shares of the Saint Paul, Minnesota-based company have slightly lagged behind the broader market over the past 52 weeks. ECL has gained 11.8% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 11.9%. However, shares of Ecolab are up nearly 12% on a YTD basis, outperforming SPX’s 1% gain. 

Looking closer, the water solutions company has also outpaced the Materials Select Sector SPDR Fund's (XLB) 5.6% decline over the past 52 weeks and a 3.5% YTD gain.

Shares of Ecolab rose 3.3% on Apr. 29 after the release of its Q1 2025 results, which showed adjusted EPS of $1.50, up 11.9% year over year and in line with the consensus estimate. Despite a 1.5% decline in reported revenue to $3.7 billion, organic sales grew 3.1%, driven by strong performance in the Global Water, Life Sciences, and Pest Elimination segments. Adjusted operating profit rose 7.7% to $589.6 million, with the adjusted operating margin expanding by 160 basis points to 15.9%. Additionally, investor sentiment was boosted by the company’s Q2 adjusted EPS guidance of $1.84 - $1.94 and reaffirmed full-year guidance of $7.42 - $7.62, reflecting 10% - 15% and 12% - 15% expected growth, respectively.

For the current fiscal year, ending in December 2025, analysts expect ECL's adjusted EPS to grow 12.8% year-over-year to $7.50. The company's earnings surprise history is promising. It beat or met the consensus estimates in the last four quarters. 

Among the 25 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 12 “Strong Buy” ratings, two “Moderate Buys,” and 11 “Holds.”

This configuration is slightly less bullish than three months ago, with 13 “Strong Buy” ratings on the stock.

On May 15, Piper Sandler analyst Charles Neivert reiterated a “Buy" rating on Ecolab and assigned a price target of $310.

As of writing, ECL is trading below the mean price target of $279.80. The Street-high price target of $310 implies a potential upside of 18.1% from the current price levels.