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Clean Harbors, Inc. (CLH) Hit a 52 Week High, Can the Run Continue?
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Have you been paying attention to shares of Clean Harbors (CLH - Free Report) ? Shares have been on the move with the stock up 6.3% over the past month. The stock hit a new 52-week high of $124.49 in the previous session. Clean Harbors has gained 23.9% since the start of the year compared to the -22% move for the Zacks Business Services sector and the -2.4% return for the Zacks Waste Removal Services industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on August 3, 2022, Clean Harbors reported EPS of $2.44 versus consensus estimate of $1.53 while it beat the consensus revenue estimate by 9.89%.
For the current fiscal year, Clean Harbors is expected to post earnings of $6.78 per share on $5.08 billion in revenues. This represents an 86.26% change in EPS on a 33.43% change in revenues. For the next fiscal year, the company is expected to earn $6.57 per share on $5.26 billion in revenues. This represents a year-over-year change of -3.06% and 3.51%, respectively.
Valuation Metrics
Clean Harbors may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Clean Harbors has a Value Score of B. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 18.3X current fiscal year EPS estimates, which is not in-line with the peer industry average of 22.1X. On a trailing cash flow basis, the stock currently trades at 13.1X versus its peer group's average of 16.2X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Clean Harbors currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Clean Harbors fits the bill. Thus, it seems as though Clean Harbors shares could have potential in the weeks and months to come.
How Does CLH Stack Up to the Competition?
Shares of CLH have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Waste Management, Inc. (WM - Free Report) . WM has a Zacks Rank of # 2 (Buy) and a Value Score of C, a Growth Score of B, and a Momentum Score of B.
Earnings were strong last quarter. Waste Management, Inc. beat our consensus estimate by 5.88%, and for the current fiscal year, WM is expected to post earnings of $5.70 per share on revenue of $19.77 billion.
Shares of Waste Management, Inc. have gained 0.6% over the past month, and currently trade at a forward P/E of 30.46X and a P/CF of 17.49X.
The Waste Removal Services industry is in the top 19% of all the industries we have in our universe, so it looks like there are some nice tailwinds for CLH and WM, even beyond their own solid fundamental situation.
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Clean Harbors, Inc. (CLH) Hit a 52 Week High, Can the Run Continue?
Have you been paying attention to shares of Clean Harbors (CLH - Free Report) ? Shares have been on the move with the stock up 6.3% over the past month. The stock hit a new 52-week high of $124.49 in the previous session. Clean Harbors has gained 23.9% since the start of the year compared to the -22% move for the Zacks Business Services sector and the -2.4% return for the Zacks Waste Removal Services industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on August 3, 2022, Clean Harbors reported EPS of $2.44 versus consensus estimate of $1.53 while it beat the consensus revenue estimate by 9.89%.
For the current fiscal year, Clean Harbors is expected to post earnings of $6.78 per share on $5.08 billion in revenues. This represents an 86.26% change in EPS on a 33.43% change in revenues. For the next fiscal year, the company is expected to earn $6.57 per share on $5.26 billion in revenues. This represents a year-over-year change of -3.06% and 3.51%, respectively.
Valuation Metrics
Clean Harbors may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Clean Harbors has a Value Score of B. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 18.3X current fiscal year EPS estimates, which is not in-line with the peer industry average of 22.1X. On a trailing cash flow basis, the stock currently trades at 13.1X versus its peer group's average of 16.2X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Clean Harbors currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Clean Harbors fits the bill. Thus, it seems as though Clean Harbors shares could have potential in the weeks and months to come.
How Does CLH Stack Up to the Competition?
Shares of CLH have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Waste Management, Inc. (WM - Free Report) . WM has a Zacks Rank of # 2 (Buy) and a Value Score of C, a Growth Score of B, and a Momentum Score of B.
Earnings were strong last quarter. Waste Management, Inc. beat our consensus estimate by 5.88%, and for the current fiscal year, WM is expected to post earnings of $5.70 per share on revenue of $19.77 billion.
Shares of Waste Management, Inc. have gained 0.6% over the past month, and currently trade at a forward P/E of 30.46X and a P/CF of 17.49X.
The Waste Removal Services industry is in the top 19% of all the industries we have in our universe, so it looks like there are some nice tailwinds for CLH and WM, even beyond their own solid fundamental situation.