Ecolab Rebounds From Downgrade

Last week, Citi downgraded Ecolab (ECL) from buy to neutral. After a blink-of-the-eye pullback to $135, shares are now pushing above resistance of $137. When I see a stock shake off a downgrade and then push higher through resistance, it gets my attention. As we keep extending higher on the overall market, I'm getting more hesitant to buy, let alone chase, but the risk-reward on ECL appears tolerable here. The stock has been trading in a range of $133 to $137 without any further resistance above the current breakout level. At worst, this should provide for a risk versus reward ratio of one-to-one with additional potential upside.

...242 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.