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Clean Harbors (CLH) Outpaces Stock Market Gains: What You Should Know

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Clean Harbors (CLH - Free Report) closed the most recent trading day at $121.82, moving +1.84% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.66%. Meanwhile, the Dow gained 0.61%, and the Nasdaq, a tech-heavy index, lost 0.02%.

Prior to today's trading, shares of the environmental services company had gained 6.19% over the past month. This has outpaced the Business Services sector's loss of 10.23% and the S&P 500's loss of 3.79% in that time.

Investors will be hoping for strength from Clean Harbors as it approaches its next earnings release. In that report, analysts expect Clean Harbors to post earnings of $1.91 per share. This would mark year-over-year growth of 67.54%. Meanwhile, our latest consensus estimate is calling for revenue of $1.29 billion, up 36.09% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.78 per share and revenue of $5.08 billion. These totals would mark changes of +86.26% and +33.43%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Clean Harbors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Clean Harbors currently has a Zacks Rank of #1 (Strong Buy).

Digging into valuation, Clean Harbors currently has a Forward P/E ratio of 17.65. For comparison, its industry has an average Forward P/E of 19.8, which means Clean Harbors is trading at a discount to the group.

The Waste Removal Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 62, putting it in the top 25% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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