Back to top

Image: Bigstock

US Ecology Strengthens Cash Position Amid Coronavirus Crisis

Read MoreHide Full Article

US Ecology, Inc. yesterday announced steps to brace for the coronavirus-induced economic uncertainty and market turbulence.

The company is taking cost-control measures aimed at generating around $15-$20 million of annual savings. It plans to reduce 2020 capital spending by around 30% to save up to $30 million in cash.

Further, US Ecology has suspended quarterly dividend beginning second-quarter 2020. This is expected to secure around $6 million in cash per quarter. The company withdrew its previously-issued guidance for the current year, responding to the pandemic-led changes in business conditions.

Jeff Feeler, chairman and CEO of US Ecology stated, “We are taking proactive and prudent actions to enhance our already strong liquidity until there is more clarity. Cost control actions, capital deferment and the dividend suspension will generate significant cash savings, providing us flexibility to preserve our talented workforce and take advantage of opportunities as the market rebounds.”

Shares of US Ecology have depreciated 45.2% over the past year compared with the 13.7% decline of the industry it belongs to.

Zacks Rank and Stocks to Consider

US Ecology currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Zacks Business Services sector are Charles River Associates (CRAI - Free Report) , Genpact Limited (G - Free Report) and Blucora, Inc. , each carrying a Zacks Rank #2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The long-term expected EPS (three to five years) growth rate for Charles River, Genpact and Blucora is 13%, 14% and 20%, respectively.

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.

This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.

See their latest picks free >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Charles River Associates (CRAI) - free report >>

Genpact Limited (G) - free report >>

Published in