10 Stocks Positioned for Breakout Growth

8. Ecolab Inc. (NYSE:ECL)

Stock Upside Potential: 17.09%

Number of Hedge Fund Holders: 62

Ecolab Inc. (NYSE:ECL) is one of the stocks positioned for breakout growth. On March 30, Bloomberg reported that Citigroup has begun approaching other lenders to join a $4.8 billion financing backing Ecolab Inc.’s (NYSE:ECL) purchase of CoolIT Systems.

The proposed financing deal would involve the sale of investment-grade bonds. According to S&P Global Ratings, the issuance of investment-grade bonds is expected to push Ecolab’s debt levels higher in the short term but is unlikely to affect the credit metric in the long term.

Ecolab is pursuing an acquisition of CoolIT Systems to capitalize on surging demand for liquid cooling in artificial intelligence-driven data centers. CoolIT Systems has made a name for itself in the design and manufacture of liquid cooling systems used by hyperscale and colocation operators.

Ecolab also plans to use CoolIT Systems’ hardware and thermal engineering to complement its own strengths in water chemistry and digital monitoring. The acquisition is expected to generate about $550 million in sales over the next 12 months.

Ecolab Inc. (NYSE:ECL) is a global sustainability leader providing water, hygiene, and infection prevention solutions, services, and technologies to over 40 industries, including food, healthcare, hospitality, and industrial. They combine chemical products, on-site service teams, and digital technology to optimize water usage, enhance safety, and improve efficiency.