As for Ecolab (ECL, Financial), it had always garnered a significant premium relative to the market due to its consistent organic growth. However, with a new CEO and an uncharacteristic misstep in entering and then exiting the energy space, Ecolab now is something of a show-me stock. Increased raw material costs could hurt margins despite a recovery in volumes, putting further pressure on the stock. We remain long-term believers in the company, and we expect that it will emerge in a stronger competitive position when its end markets rebound.
From the Mairs and Power (Trades, Portfolio) Growth Fund's second-quarter 2021 shareholder letter.