Investors were hesitant with Ecolab (NYSE: ECL) stock last year. While three of the company’s four business segments demonstrated progress throughout 2016, the one that did not — energy — was treading water as global oil and gas drilling activity remained subdued by weak market conditions. As a result, the stock gained just 4.2% in 2016.
Given that the company’s technology and services are involved with 40% of the world’s crude oil production, or 35 million barrels per day, hesitation was not an unreasonable response. But that changed last week.