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Strength Seen in Clean Harbors (CLH): Can Its 6% Jump Turn into More Strength?

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Clean Harbors (CLH - Free Report) shares soared 6% in the last trading session to close at $93.78. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 1.2% gain over the past four weeks.

The stock recorded this price increase in response to the company’s better-than-expected first-quarter 2021 results. Earnings of 42 cents per share beat the Zacks Consensus Estimate by 61.5%. Revenues of $808.2 million surpassed the consensus mark by 2.7%.

Price and Consensus

Price Consensus Chart for CLH

This environmental services company is expected to post quarterly earnings of $0.26 per share in its upcoming report, which represents a year-over-year change of -7.1%. Revenues are expected to be $787.06 million, down 8.3% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Clean Harbors, the consensus EPS estimate for the quarter has been revised 1% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on CLH going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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