Here's Why You Should Hold Clean Harbors (CLH) Stock Now

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Clean Harbors, Inc. (CLH - Free Report) is benefiting from its solid capital investments as well as pro-investor steps.

The Zacks Consensus Estimate for 2023 and 2024 revenues indicate growth of 2.7% and 4.6%, year over year, respectively.

Factors That Augur Well

Clean Harbors continues to make capital investments to enhance its quality and comply with government and local regulations. The current regulatory requirements are cost intensive and complicated for in-house disposal facilities, which in turn compel most companies to outsource their hazardous waste disposal needs.  This is where Clean Harbors steps in with its suitable disposal firms in Canada and the United States.

Moreover, Clean Harbors has a diversified customer base ranging from Fortune 500 companies to midsize and small public and private entities, which provide it with stable and recurring sources of revenues.

We are impressed with Clean Harbors’ consistent record of returning value to shareholders in form of share repurchases. In 2022, 2021, 2020 and 2019, the company had repurchased shares worth $50.2 million, $54.4 million, $74.8 million and $21.4 million, respectively. Such moves indicate the company’s commitment to create value for shareholders and underline its confidence in its business.

Along with instilling investors’ confidence these initiatives positively impact earnings per share.  

Some Risks

Clean Harbors’ current ratio at the end of fourth-quarter 2022 was pegged at 1.99, lower than the current ratio of 2.01, reported at the end of prior quarter. A decreasing current ratio is not desirable as it indicates that the company may have problems meeting its short-term obligations.

Zacks Rank and Stocks to Consider

Clean Harbors currently carries a Zacks Rank #3 (Hold). 

Some better-ranked stocks in the broader Zacks Business Services sector are Avis Budget Group, Inc. (CAR - Free Report) and ICF International, Inc. (ICFI - Free Report) .

Avis Budget currently carries a Zacks Rank #2 (Buy). CAR has a VGM score of A. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best investment opportunities. You can see the complete list of today’s Zacks #1 Rank stocks here.

CAR delivered a trailing four-quarter earnings surprise of 78%, on average.

ICF International sports a Zacks Rank #1 at present. ICFI’s 2023 revenues and earnings are expected to have surged 10.4% and 6.4% year over year, respectively.

ICF International delivered a trailing four-quarter earnings surprise of 9.2%, on average.

 

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