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Here's Why Clean Harbors (CLH) Stock is Up 30.2% Year to Date
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Shares of Clean Harbors, Inc. (CLH - Free Report) have gained 30.2% on a year-to-date basis, outperforming the 3.9% rise of the industry it belongs to.
Catalysts Behind the Upside
Acquisitions: A Key Growth Catalyst
Clean Harbors continues to grow with the help of multiple acquisitions in new and existing markets. Acquisition of the U.S. Industrial Cleaning Business of Veolia Environmental Services North America LLC (the "Veolia Business") contributed $63.9 million of revenues in the first half of 2018. The buyout is also expected to help Clean Harbors increase its industrial services capabilities and expand its U.S. Industrial Services business.
In 2017, Clean Harbors completed four acquisitions, which contributed revenues of almost $14.5 million and helped the company in multiple lines of services such as waste minimization, remodeling of its fleet of trucks, growth in daylighting and hydro excavation services markets. It also complemented its closed loop model in relation to the sale of oil products.
Operational Efficiency
Clean Harbors’ focus on improving its efficiency and lowering operating costs through advanced technology, process efficiencies and stringent cost management is encouraging. It continues to make capital investments to enhance quality and comply with government and local regulations.
Additionally, the company eyes strategic investment in businesses, which are likely to increase productivity.By setting-up additional service locations near treatment, storage and disposal facilities (TSDF), it expects to minimize capital expenditures and increase its market share. This, in turn, is likely to drive additional waste into the company’s existing facilities, thereby increasing capacity utilization and enhancing overall profitability.
Diversified Service Offerings
With several facilities on the Texas Gulf Coast, Clean Harbors provides a broad range of services such as end-to-end hazardous waste management, emergency spill response, industrial cleaning and maintenance and recycling services.
We believe this has helped Clean Harbors gain popularity as a leading emergency response firm through dedicated staff and integrated facilities.
Some other top-ranked stocks in the broader Business Services sector include Core-Mark Holding Company , ICF International (ICFI - Free Report) and Paychex (PAYX - Free Report) . While Core-Mark Holding Company sports a Zacks Rank #1, ICF International and Paychex carry a Zacks Rank #2 (Buy).
The long-term expected earnings per share growth rate for Core-Mark, ICF International and Paychex is 13%, 10% and 8.4%, respectively.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Here's Why Clean Harbors (CLH) Stock is Up 30.2% Year to Date
Shares of Clean Harbors, Inc. (CLH - Free Report) have gained 30.2% on a year-to-date basis, outperforming the 3.9% rise of the industry it belongs to.
Catalysts Behind the Upside
Acquisitions: A Key Growth Catalyst
Clean Harbors continues to grow with the help of multiple acquisitions in new and existing markets. Acquisition of the U.S. Industrial Cleaning Business of Veolia Environmental Services North America LLC (the "Veolia Business") contributed $63.9 million of revenues in the first half of 2018. The buyout is also expected to help Clean Harbors increase its industrial services capabilities and expand its U.S. Industrial Services business.
In 2017, Clean Harbors completed four acquisitions, which contributed revenues of almost $14.5 million and helped the company in multiple lines of services such as waste minimization, remodeling of its fleet of trucks, growth in daylighting and hydro excavation services markets. It also complemented its closed loop model in relation to the sale of oil products.
Operational Efficiency
Clean Harbors’ focus on improving its efficiency and lowering operating costs through advanced technology, process efficiencies and stringent cost management is encouraging. It continues to make capital investments to enhance quality and comply with government and local regulations.
Additionally, the company eyes strategic investment in businesses, which are likely to increase productivity. By setting-up additional service locations near treatment, storage and disposal facilities (TSDF), it expects to minimize capital expenditures and increase its market share. This, in turn, is likely to drive additional waste into the company’s existing facilities, thereby increasing capacity utilization and enhancing overall profitability.
Diversified Service Offerings
With several facilities on the Texas Gulf Coast, Clean Harbors provides a broad range of services such as end-to-end hazardous waste management, emergency spill response, industrial cleaning and maintenance and recycling services.
We believe this has helped Clean Harbors gain popularity as a leading emergency response firm through dedicated staff and integrated facilities.
Zacks Rank & Stocks to Consider
Currently, Clean Harbors carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Some other top-ranked stocks in the broader Business Services sector include Core-Mark Holding Company , ICF International (ICFI - Free Report) and Paychex (PAYX - Free Report) . While Core-Mark Holding Company sports a Zacks Rank #1, ICF International and Paychex carry a Zacks Rank #2 (Buy).
The long-term expected earnings per share growth rate for Core-Mark, ICF International and Paychex is 13%, 10% and 8.4%, respectively.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>