8 Best Cleaning Materials Stocks To Invest In Now

4. Ecolab Inc. (NYSE:ECL)

Number of Hedge Fund Holders as of Q2 2024: 42

Ecolab Inc. (NYSE:ECL) offers cleaning and sanitizing products and operates in four segments: Global Industrial, Global Institutional & Specialty, Global Healthcare & Life Sciences, and Global Pest Elimination.

The company is on the path to growth. It experienced a 35% adjusted earnings growth in Q2, with 25% to 29% earnings growth expected for the entire year. Its robust business momentum continued in Q2, delivering for its customers and shareholders. Organic sales growth stayed in its previously forecasted 4% to 5% range, with performance across the rest of the company’s segment improved.

This growth continues to be leveraged by its exceptional organic operating income margin expansion. With solid top-line momentum and its operating margins expanding towards the 20% target, Ecolab Inc. (NYSE:ECL) is on the path to attaining its long-term 12 to 15 earnings growth trajectory.

To support its long-term growth journey, the company is taking on its One Ecolab initiative that will help fuel 5% to 7% long-term organic sales growth and continue the expansion of its operating margins towards 20% and beyond. The company ranks fourth on our list of the 8 best cleaning material stocks to invest in now.

Mairs & Power Growth Fund stated the following regarding Ecolab Inc. (NYSE:ECL) in its fourth quarter 2023 investor letter:

“All of our Materials holdings—Ecolab Inc. (NYSE:ECL), HB Fuller (FUL), and Sherwin Williams (SHW)—also posted strong results in 2023, a stark reversal from the prior year. After oil prices spiked above $100 in 2022 due to the Ukraine-Russia Conflict, oil has since pulled back to the low $70s. Oil and its by-products are major inputs for all of our Materials holdings; as such, lower oil prices have led to a rebound in profits. For example, our largest Materials holding—Ecolab—is expected to increase earnings more than 15% this year after declining 5% last year.”