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Here's Why You Should Add Covanta Holding (CVA) Stock Now

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Earnings estimates for Covanta Holding Corporation for 2019 rose 310% on a year-over-year basis to 21 cents per share. Revenue estimates for 2019 rose 0.68% on a year-over-year basis to $1.88 billion.

Let’s focus on the factors that make the stock an appropriate investment option at the moment.

Zacks Rank & VGM Score

Covanta Holdingcurrently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The stock has an impressive VGM Score of A. Here V stands for Value, G for Growth and M for Momentum with the score being a weighted combination of all three factors. Back tested results show that stocks with a favorable VGM Score of A or B coupled with a bullish Zacks Rank are the best investment options.

Price Movement

In the past 12 months, Covanta Holding’s shares have gained 5.5% against the industry’s decline of 7.9%.

Expanding Market Reach

In the United States only 7% of the annually generated waste of nearly 400 million tons is converted to energy. Currently, Covanta Holdings is a leader in the space holding more than 75% of this market. The company continues to strengthen its existing operations by starting new facilities and extending existing agreements with clients.

In the first quarter, the company initiated operations at the East 91st Street Marine Transfer Station in Manhattan. The new facility is expected to deliver 170,000 tons annually for processing at the Delaware Valley and Niagara sites under a 20-years contract. Through the new Manhattan facility, the company will process nearly 33% of all the residential waste collected from New York City. Moreover, the company keeps making investments toward infrastructure upgrade and expansion. It aims to invest more than $70 million in different growth projects in 2019 to expand existing operations.

Long-Term Growth & Dividend Yield

The company’s long-term (three to five years) earnings growth is pegged at 15%.

Currently, the company has a dividend yield of 5.62% compared with the Zacks S&P 500 composite’s 1.86%.

Other Key Picks

Some other top-ranked stocks from the same sector are Cheniere Energy, Inc (LNG - Free Report) , Antero Resources Corporation (AR - Free Report) and WPX Energy, Inc , each holding a Zacks Rank of 2.

For 2019, earnings estimates for Cheniere Energy moved up 4.5% to $2.06 per share in the past 60 days. The company’s long-term earnings growth is pegged at 31.07%

For 2019, earnings estimates for Antero Resources moved up 10.4% to 95 cents per share in the past 60 days. The company’s long-term earnings growth is pegged at 20%

WPX Energy delivered an average positive earnings surprise of 46.11% in the last four quarters. The company’s long-term earnings growth is pegged at 28%

Wall Street’s Next Amazon

Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.

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