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Here's Why Clean Harbors (CLH) Stock Is an Attractive Pick
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Clean Harbors, Inc. (CLH - Free Report) is an environmental, energy and industrial services provider that has performed extremely well over the past year and has the potential to sustain momentum in the near term. Consequently, if you haven’t taken advantage of the share price appreciation yet, it’s time you add the stock to your portfolio.
What Makes CLH a Great Pick?
An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run over the year. Shares of Clean Harbors have returned 50.2% compared with the 23.8% growth of the industry it belongs to and the 26.1% rise of the Zacks S&P 500 composite.
Solid Rank & VGM Score: CLHcurrently carries a Zacks Rank #2 (Buy) and has a VGM Score of B. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities for investors. Thus, the company appears to be a compelling investment proposition at the moment.
Northward Estimate Revisions: Five estimates for 2024 have moved north in the past 60 days versus no southward revisions, reflecting analysts’ confidence in the company. The Zacks Consensus Estimate for 2024 earnings has moved up 1.6% in the past 60 days.
Positive Earnings Surprise History: CLH has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an earnings surprise of 0.7% on average.
Strong Growth Prospects: The Zacks Consensus Estimate for Clean Harbors’2024 earnings is pegged at $7.47, which implies 6.9% year-over-year growth. Moreover, earnings are expected to register a 14.9% increase in 2025.
Growth Factors: Clean Harbors’ expansion is led by acquisitions. The recent acquisition of HEPACO allows the company to access additional markets and new customers. Also, it improves the capabilities around railway and transportation responses. The 2023 acquisition of Thompson Industrial Services expanded CLH’s Environmental Services segment’s industrial service operations in the U.S. south-eastern region.
CLH continues to make capital investments to improve its efficiency and facilitate regulatory compliance,addressing the complexity and costliness of in-house disposal facilities. With disposal firms across Canada and the United States, it offers outsourcing solutions for hazardous waste disposal. Its diverse customer base, including Fortune 500 firms and smaller entities, ensures stable revenue streams.
Clean Harbors' current ratio (a measure of liquidity) at the end of the first quarter of 2024 was 2.07, higher than the preceding quarter's 1.98 and the year-ago quarter's 2.05. A current ratio of more than 1 often indicates that the company will be easily paying off its short-term obligations.
The company consistently rewards shareholders through share repurchases. In 2023, 2022 and 2021, CLH repurchased shares worth$51.2 million, $50.2 million, $54.4 million and $74.8 million, respectively.
CRAI currently carries a Zacks Rank #2 and has a long-term earnings growth expectation of 16%.
The company has an encouraging track record with respect to earnings surprise, having surpassed the Zacks Consensus Estimate in three of the last four quarters and missed once. The average beat is 19.07%. Shares of CRAI have surged 81.5% in the past year.
The company delivered an earnings surprise of 12.47%, on average, surpassing the Zacks Consensus Estimate in three of the trailing four quarters and missing once. Shares of BAH have risen 64.7% in the past year.
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Here's Why Clean Harbors (CLH) Stock Is an Attractive Pick
Clean Harbors, Inc. (CLH - Free Report) is an environmental, energy and industrial services provider that has performed extremely well over the past year and has the potential to sustain momentum in the near term. Consequently, if you haven’t taken advantage of the share price appreciation yet, it’s time you add the stock to your portfolio.
What Makes CLH a Great Pick?
An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run over the year. Shares of Clean Harbors have returned 50.2% compared with the 23.8% growth of the industry it belongs to and the 26.1% rise of the Zacks S&P 500 composite.
Clean Harbors, Inc. Price
Clean Harbors, Inc. price | Clean Harbors, Inc. Quote
Solid Rank & VGM Score: CLHcurrently carries a Zacks Rank #2 (Buy) and has a VGM Score of B. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities for investors. Thus, the company appears to be a compelling investment proposition at the moment.
Northward Estimate Revisions: Five estimates for 2024 have moved north in the past 60 days versus no southward revisions, reflecting analysts’ confidence in the company. The Zacks Consensus Estimate for 2024 earnings has moved up 1.6% in the past 60 days.
Positive Earnings Surprise History: CLH has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an earnings surprise of 0.7% on average.
Strong Growth Prospects: The Zacks Consensus Estimate for Clean Harbors’2024 earnings is pegged at $7.47, which implies 6.9% year-over-year growth. Moreover, earnings are expected to register a 14.9% increase in 2025.
Growth Factors: Clean Harbors’ expansion is led by acquisitions. The recent acquisition of HEPACO allows the company to access additional markets and new customers. Also, it improves the capabilities around railway and transportation responses. The 2023 acquisition of Thompson Industrial Services expanded CLH’s Environmental Services segment’s industrial service operations in the U.S. south-eastern region.
CLH continues to make capital investments to improve its efficiency and facilitate regulatory compliance,addressing the complexity and costliness of in-house disposal facilities. With disposal firms across Canada and the United States, it offers outsourcing solutions for hazardous waste disposal. Its diverse customer base, including Fortune 500 firms and smaller entities, ensures stable revenue streams.
Clean Harbors' current ratio (a measure of liquidity) at the end of the first quarter of 2024 was 2.07, higher than the preceding quarter's 1.98 and the year-ago quarter's 2.05. A current ratio of more than 1 often indicates that the company will be easily paying off its short-term obligations.
The company consistently rewards shareholders through share repurchases. In 2023, 2022 and 2021, CLH repurchased shares worth$51.2 million, $50.2 million, $54.4 million and $74.8 million, respectively.
Stocks to Consider
A couple of better-ranked stocks in the broader Zacks Business Services sector are Charles River Associate (CRAI - Free Report) and Booz Allen Hamilton (BAH - Free Report) ).
CRAI currently carries a Zacks Rank #2 and has a long-term earnings growth expectation of 16%.
The company has an encouraging track record with respect to earnings surprise, having surpassed the Zacks Consensus Estimate in three of the last four quarters and missed once. The average beat is 19.07%. Shares of CRAI have surged 81.5% in the past year.
BAH carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here. It has a long-term earnings growth expectation of 13.7%.
The company delivered an earnings surprise of 12.47%, on average, surpassing the Zacks Consensus Estimate in three of the trailing four quarters and missing once. Shares of BAH have risen 64.7% in the past year.