The stock market ended mixed on Tuesday. S&P 500 grew 0.2% to 4,305, with consumer staples and consumer discretionary performing best. On the other hand, NASDAQ declined 0.2% to 13,103.
Meanwhile, Ecolab’s (ECL) profit growth looked good prior to the pandemic in 2020.
Tweet of the Day
The Nasdaq 100 broke through & closing above the 50SMA. Plus we have a breakout, and have been seeing lower lows. All three things are bullish.
I closed out of hedges. I don’t expect tech earnings to be strong for the disrupted companies, but the chart says what it says. $QQQ pic.twitter.com/jgf1FfcR9J
— Wasteland Capital (@ecommerceshares) July 19, 2022
Chart of the Day
Our chart of the day is a ten-year chart of chemical cleaner company ECL.
ECL was founded in 1923 as Economics Laboratory and its 1st product was Absorbit which cleaned carpets on the spot and eliminated the need for hotels to be shut down to be cleaned. The company went public in 1957, eventually changed its name to Ecolab in 1986, and has increased its dividend each year since. Today, it boasts 6000 patents and 1500 scientists who continue to innovate, creating new and better products.
Based on the ten-year chart, David Sharek said:
Prior to the pandemic (2020), ECL had only one down year of profit growth going all the way back to 1992, and that was 2001, when the US was in recession.
Notice that the chart looks good prior to the last three years. Management thinks they will have more Ecolab-like performance going forward.
ECL is part of the Conservative Growth Portfolio. David Sharek’s current Fair Value of $167 is just 21x.
