Back to top

Image: Bigstock

Covanta (CVA), North Hempstead Ink Deal for Waste Management

Read MoreHide Full Article

Covanta Holding Corporation has entered into a sustainable waste disposal agreement with the Town of North Hempstead, NY. This five-year plan became effective Jan 1, 2021 and has an option to be extended for another 10 years.

Details of the Deal

With this agreement, the Town will use the Covanta Hempstead Waste-to-Energy facility located in Westbury to dispose 140,000 tons of waste annually, which it earlier used to dump in off-island landfills. The facility combusts wastes at extremely high temperatures to generate steam for electricity production. Through this process, the company reduces greenhouse gases by eliminating methane emissions from landfills.

Benefits of the Deal

The move marks a switch to local Waste-to-Energy option, which will significantly shrink North Hempstead’s carbon footprint and play a vital role in its transition to a zero-carbon economy. This deal will trim 4,000 tons of carbon dioxide from vehicle emissions annually along with lowering truck traffic on Long Island’s busy highways. Also, it will eliminate 140,000 tons of carbon dioxide equivalent that would otherwise be generated.

Covanta’s Waste Management Solutions

Over the past several years, Covanta has been investing substantially in purchasing property, plant and equipment. These investments are made to address the infrastructural need while growing the company’s customer base for various capital projects and acquisitions to increase safety and reliability of its Energy-from-Waste projects, and provide solutions for solid waste and recyclable households besides various hazardous wastes.

Notably, Covanta's modern Energy-from-Waste facilities safely convert approximately 21 million tons of waste from municipalities and businesses into clean, renewable electricity to power one million homes. Currently, the company operates four Waste-to-Energy facilities on Long Island, which collectively processes 1.8 million tons of waste, thereby generating electricity to power 100,000 homes. The latest deal signed with the Town of North Hampstead will therefore boost Covanta’s strategy to provide renewable energy solutions from wastes.

Zacks Rank & Price Performance

Covanta currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the past three months, the stock has rallied 75.3%, outperforming the industry’s rise of 20.2%.

Stocks to Consider

A few better-ranked stocks from the same sector are DCP Midstream Partners, LP , Altus Midstream Company (ALTM - Free Report) and Ameresco, Inc. (AMRC - Free Report) . While  DCP Midstream Partners and Altus Midstream Company flaunt a Zacks Rank #1, Ameresco holds a Zacks Rank#2 (Buy) at present.

DCP Midstream Partners pulled off an earnings surprise of 13.6%, on average, in the last four quarters. The Zacks Consensus Estimate for 2021 earnings has moved 15.3% north in the past 60 days.

Altus Midstream Company delivered an earnings surprise of 264.3% in the last four quarters, on average. The Zacks Consensus Estimate for 2021 earnings has moved 46% north in the past 60 days.

Ameresco expected to see earnings growth of 17.5% in the long term (three to five years). It delivered an earnings surprise of 68.6% in the trailing four quarters, on average.

The Hottest Tech Mega-Trend of All

Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>


Unique Zacks Analysis of Your Chosen Ticker


Pick one free report - opportunity may be withdrawn at any time


Ameresco, Inc. (AMRC) - $25 value - yours FREE >>

Arcadium Lithium PLC (ALTM) - $25 value - yours FREE >>

Published in