2. Ecolab Inc. (NYSE:ECL)
Potential Upside: 27.84%
Number of Hedge Fund Holders:62
Ecolab Inc. (NYSE:ECL) is one of the best industrial stocks benefiting from the data center boom. On May 7, the company declared a regular quarterly cash dividend of $0.73 per common share.
The dividend covers shareholders of record at the close of business on June 16, 2026, and will be paid on July 15, 2026. Ecolab has paid cash dividends on its common stock for 89 consecutive years.
On April 28, Ecolab reported a 13% rise in adjusted diluted EPS for the first quarter of the year to $1.70. The company attributed the growth to continued strong value pricing, accelerated volume growth, and solid expansion in the operating income margin.
For the second quarter of the year, Ecolab is projecting a 7% to 12% growth in adjusted diluted EPS in the $2.02 to $2.12 range, reflecting a short transition period as benefits from the energy surcharge progressively build to offset higher commodity costs.
“As we move into the second quarter, we expect a short transition period as we absorb rising commodity costs, while the benefits from the energy surcharge progressively build. Exiting the second quarter, we expect accelerating pricing to cover the dollar impact from higher commodity costs, with gross margin stabilizing in the second half of the year. With this, along with strong new business wins and improved productivity, we expect Ecolab’s performance to strengthen in the second half of the year and are reiterating our expectation to deliver 12-15% adjusted EPS growth in 2026, excluding the impact of the recently announced acquisition of CoolIT Systems,” Ecolab chairman, president and chief executive officer Christophe Beck said.
“The pending acquisition of CoolIT is an important strategic step for Ecolab, further strengthening our Global High-Tech growth engine and extending our leadership in high-performance cooling for data centers. Our combined end-to-end cooling technologies enable leading hyperscale and colocation data centers to put more power towards computing, with less water and energy consumption. Overall, we are confident in our team’s ability to execute and deliver for customers and shareholders, supported by the strong momentum of our growth engines and solid performance in our core businesses,” he added.
Based on 29 analyst ratings compiled by CNN, Ecolab has an average price target of $325, a 27.84% upside from the current price of $254.22.
Ecolab Inc. (NYSE:ECL) is a global leader in water, hygiene, and infection prevention solutions and services. The company’s offerings integrate science-based solutions, data-driven insights, AI technology, and world-class service.
